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dc.contributor.authorArns, Jürgenen_US
dc.contributor.authorBhattacharya, Kaushiken_US
dc.description.abstractUsing the Family Expenditure Survey (FES) data for the United Kingdom (UK), the paper specifies and estimates a ?complete? Hilden-brand Kneip (HK) model of consumption, extending earlier efforts that were ?partial? in nature. As the estimated parameters in the ?partial? HK model are time varying, the paper provides empirical evidence that their movements over time reflect a near unit root process. To estimate the ?complete? HK model, the paper specifies a simple OLS model of the ?remainder term? in the ?partial? HK model. The remainder term in the partial HK model, which as per theory should be influenced by unobservable variables like expectation formation of households, is found to be affected by housing prices. The complete model is found to explain movements in consumption better than the partial model. Results based on bootstrap suggest that given the sampling error in the FES data, the overall fit of the model should be considered as good.en_US
dc.relation.ispartofseriesBonn econ discussion papers 2005,15en_US
dc.subject.keywordConsumption Functionen_US
dc.subject.keywordAverage Derivativeen_US
dc.titleModelling Aggregate Consumption Growth with Time-Varying Parametersen_US
dc.typeWorking Paperen_US
Appears in Collections:Bonn Econ Discussion Papers, Bonn Graduate School of Economics (BGSE), Universität Bonn

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