Data/hora: 02/06/2024 14:45:46

Provedor de dados: | 31
País: | United States
Título: | Consumption Growth in a Booming Economy: Taiwan 1976-96
Autores: | McKenzie,   David.
Data: | 2006-01-30
Ano: | 2001
Palavras-chave: | Consumption growth; Pseudo-panel; Prudence; Taiwan; International Development; O12; O16; E21; C23.
Resumo: | Consumption and income have both grown rapidly in Taiwan over the past forty years, with younger birth cohorts experiencing faster growth. The long upward trend in consumption presents a strong challenge to the consumption smoothing predictions of the Permanent Income Hypothesis. We investigate the extent to which consumption theory can account for this trend in an environment where a large majority of households have high savings rates. Household survey data from 1976-96 are used to estimate dynamic pseudo-panel models with inter-cohort heterogeneity. We evaluate the impacts on consumption of migration, mortality, household composition, liquidity constraints, unanticipated aggregate shocks, hyperbolic discounting, habit formation and precautionary saving. Taiwanese consumption growth is found to result from high levels of prudence, with the faster consumption growth of younger cohorts attributed to their greater participation in industries with more earnings risk.
Tipo: | Working or Discussion Paper
Idioma: | Inglês

Identificador:

19705

http://purl.umn.edu/28398

Editor: | AgEcon Search

Relação:

Yale University&gt;Economic Growth Center&gt;Center Discussion Papers

Center Discussion Paper No. 823

Formato:

57

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