AN ANALYSIS OF INTERNATIONAL CONSUMPTION FUNCTIONS.

Abstract

Consumption functions form a major component of modern macroeconomic theory. The considerable amount of econometric evidence that has been accumulated since the 1930's has generally been interpreted as showing a significant relationship between national income and aggregate consumption. Frequently, classical tests of significance have been applied to the results obtained from the estimation of aggregate consumption functions. However, it seems unlikely that the assumptions underlying these classical tests are satisfied by the economic time series which have been used in these studies. This paper is concerned with more robust ways of examining the significance of such correlation and regression studies.

Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1967
Accession Number
AD0661826

Entities

People

  • E. Philip Howrey
  • Michael D. Godfrey

Organizations

  • Princeton University

Tags

Readers

  • Economics
  • Theoretical Analysis.