The aggregate consumption function: : theoretical formulation, econometric specification and the UK evidence

Molana, Hassan (1987) The aggregate consumption function: : theoretical formulation, econometric specification and the UK evidence. University of Southampton, Doctoral Thesis.

Abstract

This thesis can be described as an attempt to highlight various aspects of modelling the aggregate consumption function. It reviews the major theories of consumer behaviour, subjects these theories to an intensive empirical scrutiny and provides a detailed and critical discussion of the econometric studies which search for robust and consistent empirical specifications in order to explain the aggregate behaviour of consumers' expenditure. In so doing, it confronts the contradictory features of the alternative approaches towards modelling the consumption function, outlines the shortcomings inherent in the corresponding literature, points out the crucial problems which have been overlooked by other researchers and, finally, attempts to introduce modifications which help to improve upon the existing models.The layout of the thesis is as follows: the introductory chapter gives an overview of the subject under study and is followed by seven chapters; Chapters 1 and 2 look at the historical issues regarding the theoretical and empirical modelling problems. Chapters 3 reviews the main econometric studies and Chapter 4 provides an econometric specification of the consumption function; Chapters 5 and 6 look at the problems concerning the uncertainty aspects of the future consumption plans and explain the recent studies of the rational expectations version of the consumption function and, finally, Chapter 7 develops a stochastic version of the life cycle theory with varying prices and interest rates. A data set for the UK is used to provide evidence where relevant. (D82120)

This record has no associated files available for download.

Contributors

Download statistics