Regionally, the highest marginal and average propensities to consume are estimated for Africa region as expected.
📌 3 Maddede Bu Makale
🎯
Amaç & Hipotez:Öz The main purpose of this study is to estimate the Keynesian Absolute Income Hypothesis using panel data from developing countries classified by income groups and regions.
📊
Temel Bulgular & Veri:The results suggest that current income level is a significant determinant of current consumption expenditures which means that Keynesian consumption function is still valid for developing countries.
💡
Sonuç & Katkı:Regionally, the highest marginal and average propensities to consume are estimated for Africa region as expected.
🔬Tür:Araştırma Makalesi
📍Kapsam:Genişletilmiş Akademik Örneklem
⚙️Değişkenler:Anahtar Kelimeler Developing Countries · Keynes · Absolute İncome
Özet
Öz The main purpose of this study is to estimate the Keynesian Absolute Income Hypothesis using panel data from developing countries classified by income groups and regions. In accordance with this purpose, fixed and random effects are used as estimators. The results suggest that current income level is a significant determinant of current consumption expenditures which means that Keynesian consumption function is still valid for developing countries. Besides, marginal and average propensities to consume are smaller than 1 as expected and decreasing from low towards upper-middle income countries. Regionally, the highest marginal and average propensities to consume are estimated for Africa region as expected.
TEKİN, İ. (2018). Sensitivity of Consumption to Current Income in Developıng Countries: An Empirical Reinvestigation of Absolute Income Hypothesis. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Cilt: 27 - Sayı: 1, 48–62. https://ajindex.com/articles/73271
Ando, A. & Modigliani, F. (1963). The “life cycle” hypothesis of saving: Aggregate implications and tests. The American Economic Review, 53(1), 55-84.
Asteriou, D. & Hall, S.G. (2011). Applied econometrics. Palgrave Macmillan. Attfield, C., Demery, D. & Duck, N. (1991). Rational expectations in macroeconomics: An introduction to theory and evidence. Wiley-Blackwell. Baltagi, B. (2005). Econometric analysis of panel data (3rd ed). John Wiley & Sons. Berg, E. (2013). Are poor people credit-constraint or myopic? Evidence from a South African panel. Journal of Development Economics, 101, 195-205.
Bilgili, F. (2006). Random walk, excess smoothness or excess sensitivity? Evidence from literature and an application for Turkish economy. Brady, D.S. & Friedman, R.D. (1947). PART IV: Savings and The Income Distribution. In Studies in income and wealth (pp. 247-265).
NBER. Breusch, T.S. & Pagan, A.R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253.
Brooks, C. (2008). Introductory econometrics for finance. Cambridge University Press.
Campbell, J.Y. & Mankiw, N.G. (1990). Permanent income, current income, and consumption. Journal of Business & Economic Statistics, 8(3), 265-279.
Chyi, Y.L. & Huang, C.H. (1997). An empirical study of the ‘rule of thumb’ consumption model in five East Asian countries. Applied Economics, 29(10). 1271-1282.
Corbo, V. & Schmidt-Hebbel, K. (1991). Public policies and saving in developing countries. Journal of Development Economics, 36(1), 89-115.
Duesenberry, J.S. (1949). Income, saving and the theory of consumer behavior. Harvard University Press.
Flavin, M. A. (1981). The adjustment of consumption to changing expectations about future income. Journal of Political Economy, 89(5), 974-1009.
Friedman, M. (1957). A theory of the consumption function. Princeton University Press.
Gan, W.B. & Soon, L.Y. (1994). Rational expectations, saving and anticipated changes in income: Evidence from Malaysia and Singapore. Journal of Macroeconomics, 16(1), 157-170.
Gujarati, D.N. & Porter, D. (2012). Temel ekonometri (Ü.Şenesen ve G. Günlük Şenesen, Çev.). Literatür Yayıncılık. Hall, R.E. (1978). Stochastic implications of the life cycle-permanent income hypothesis: Theory and evidence. Journal of Political Economy, 86(6), 971-987.
Haque, N.U. & Montiel, P. (1989). Consumption in developing countries: Tests for liquidity constraints and finite horizons. The Revi