Wealth effects in the consumption function of an emerging economy: Argentina 1980-2000

The effects of wealth on consumers´ expenditure have been widely studied since a long time ago, but a recent literature has suggested that consumers´ decisions respond to “wealth perception”. This work models aggregate consumption of Argentina trying to identify such effects over a period of great m...

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Autores principales: Ahumada, Hildegart, Garegnani, María Lorena
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2002
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/170377
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Sumario:The effects of wealth on consumers´ expenditure have been widely studied since a long time ago, but a recent literature has suggested that consumers´ decisions respond to “wealth perception”. This work models aggregate consumption of Argentina trying to identify such effects over a period of great macroeconomic variability. The results show that national disposable income is the only long-run determinant of private consumption and two proxies for adjusting wealth are adopted by the consumers in the short-run: a measure of real exchange rate and an effect from last peak income. Other determinants are also discussed.