This paper investigates the relationship between government spending and private consumption. The general framework is a cointegration approach of Ogaki (1992) used to estimate the intratemporal elasticity of substitution between government and private consumption in a panel of 15 European countries. Recently developed non-stationary panel methodologies that assume cross-section dependence are applied. Results indicate an Edgeworth substitutability between private and public spending. (C) 2010 Elsevier B.V. All rights reserved.
Auteri, M., Costantini, M. (2010). A panel cointegration approach to estimating substitution elasticities in consumption. ECONOMIC MODELLING, 27(3), 782-787 [10.1016/j.econmod.2010.01.021].
A panel cointegration approach to estimating substitution elasticities in consumption
AUTERI, MONICA;
2010-01-01
Abstract
This paper investigates the relationship between government spending and private consumption. The general framework is a cointegration approach of Ogaki (1992) used to estimate the intratemporal elasticity of substitution between government and private consumption in a panel of 15 European countries. Recently developed non-stationary panel methodologies that assume cross-section dependence are applied. Results indicate an Edgeworth substitutability between private and public spending. (C) 2010 Elsevier B.V. All rights reserved.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
