AN ANALYSIS OF INTERNATIONAL CONSUMPTION FUNCTIONS.
PRINCETON UNIV N J ECONOMETRIC RESEARCH PROGRAM
Pagination or Media Count:
Consumption functions form a major component of modern macroeconomic theory. The considerable amount of econometric evidence that has been accumulated since the 1930s 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.
- Economics and Cost Analysis