Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/142469
Authors: 
Vasilev, Aleksandar
Year of Publication: 
2015
Abstract: 
In this paper, an econometric model of consumption in Bulgaria for the period 1997-2005 is constructed. The Error-Correction Model (ECM) approach is employed and long-run relationship between household consumption and income was found. The primary purpose of this empirical paper is to get a better understanding of the factors driving household consumption in Bulgaria and to estimate a consumption function to be used for medium-term forecasting. It is shown that all households behave in a Keynesian way, basing their consumption decisions on current income.
Subjects: 
Keynesian consumption function
Error-correction model
JEL: 
E21
E27
Document Type: 
Preprint

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