Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/101668 
Year of Publication: 
1991
Series/Report no.: 
Diskussionsbeiträge - Serie II No. 126
Publisher: 
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft, Konstanz
Abstract: 
With representative agents maximizing their expected Xife time Utility, it can be shown under certain functional form assumptions that consumption follows a random walk and should be cointegrated across countries, because in an optimal risk pooling arrangement agents smooth consumptions with respect to erratic income movements. These implications are analyzed for the G-7-countries using spectral based and coIntegration techniques. Also the contemporaneous and causal feedback and a factor analytical model are estimated for the first differences of the consumption series. The results indicate little comovement of consumption across countries for annual data from 1950 to 1985.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.