How Does the Sensitivity of Consumption to Income Vary Over Time? : International Evidence

This paper studies how the sensitivity of consumption to income has changed over time as the degree of financial integration has risen. In standard theory, greater financial integration facilitates international borrowing and lending, helping to re...

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Bibliographic Details
Main Authors:	Islamaj, Ergys, Kose, M. Ayhan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	PER CAPITA CONSUMPTION NATIONAL OUTPUT GROWTH RATES MONETARY POLICY CLOSED ECONOMIES DEPOSITS LAGS INTERNATIONAL CAPITAL MONETARY ECONOMICS DISPOSABLE INCOME INCOME INTEREST RATE OF RETURN INTEREST RATE EXCHANGE STOCK MARKET DISCOUNT RATE ECONOMIC REVIEW LIQUIDITY DEVELOPING COUNTRIES EQUITY MARKET EXPORTS ELASTICITY NEGATIVE LINK POLITICAL ECONOMY DEVELOPING ECONOMIES PORTFOLIO INTERNATIONAL BUSINESS INTERNATIONAL EQUITY OPTIMIZATION CROSS-COUNTRY CORRELATION INCENTIVES POLICY DISCUSSIONS VARIABLES PRICE REAL INCOME FINANCIAL INTEGRATION CONSUMPTION GROWTH PAYMENTS WEALTH SAVING AGGREGATE INCOME EMPIRICAL LITERATURE DEVELOPING COUNTRY EMPIRICAL ANALYSIS DEVELOPMENT ADVANCED COUNTRIES FOREIGN TRADE TOTAL FACTOR PRODUCTIVITY SAVINGS GLOBAL ECONOMY DEVELOPMENT ECONOMICS NEGATIVE IMPACT ADVANCED ECONOMIES EXCHANGE RATES LIQUIDITY CONSTRAINTS PRODUCTIVITY ECONOMETRICS INTEREST RATES INTEREST RATE SHOCKS GLOBALIZATION DEBT MEASUREMENT ERROR FOREIGN ASSETS OPEN ECONOMY BUSINESS CYCLE PRODUCT REAL INTEREST RATE RISK SHARING UTILITY CROSS-COUNTRY INCOME FINANCIAL SYSTEM SERIAL CORRELATION LIBERALIZATION ECONOMIC RESEARCH EQUITY DATA AVAILABILITY CONSUMPTION BOND MARKETS CAPITAL CONTROLS CREDIT CONSTRAINTS CAPITAL MARKET INTEREST VOLATILITY COUNTRY RISK RAPID INCREASE FUTURE DEPENDENT VARIABLE INCOME SHOCKS FOREIGN DIRECT INVESTMENT CREDIT MACROECONOMICS POLITICAL SCIENCE PERMANENT INCOME UTILITY FUNCTION DYNAMIC PANEL AGGREGATE DEMAND REAL RATE ECONOMY POSITIVE CORRELATION AGGREGATE OUTPUT MEASUREMENT SHARES ASSETS REAL EXCHANGE RATE BENCHMARK TRADE LIBERALIZATION HIGH CORRELATION MONETARY POLICIES EQUAL WEIGHTS INTERNATIONAL PORTFOLIO OUTPUT CLOSED ECONOMY REGRESSION ANALYSIS INSURANCE BUSINESS CYCLES PERMANENT INCOME HYPOTHESIS TRADE FUTURE STUDIES GDP THEORY FINANCIAL DEVELOPMENT EQUITY MARKETS INVESTMENT BOND RANDOM WALK SHARE BANKING PRIVATE CONSUMPTION DYNAMIC PANEL FRAMEWORK CAPITAL ACCOUNTS POLICY RESEARCH EXCHANGE RATE RISK AVERSION LIABILITIES OPEN ECONOMIES MACROECONOMIC PERFORMANCE CAPITAL ACCOUNT DEVELOPMENT POLICY FUTURE RESEARCH
Online Access:	http://documents.worldbank.org/curated/en/2016/05/26330512/sensitivity-consumption-income-vary-over-time-international-evidence http://hdl.handle.net/10986/24234

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http://documents.worldbank.org/curated/en/2016/05/26330512/sensitivity-consumption-income-vary-over-time-international-evidence
http://hdl.handle.net/10986/24234

How Does the Sensitivity of Consumption to Income Vary Over Time? : International Evidence

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