Tests of Nonlinear Consumption Functions: The Case of Korea, Taiwan, Thailand and India

Wen jen Hsieh

doi:10.1080/10168739400080014

Tests of Nonlinear Consumption Functions: The Case of Korea, Taiwan, Thailand and India

Wen jen Hsieh

Department of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

In this study, the permanent-income hypothesis and the Keynesian consumption function for four Asian countries are considered. The MPCs for Korea and Taiwan characterized by rapid economic growth have been on the decline, whereas the MPCs for Thailand and India with moderate or low economic growth “have been stable. The decline in MPCs and rise in MPSs, in turn, are expected to facilitate government debt financing domestically and/or improve trade balance account. The real interest rate is found to be negative and significant only for India, suggesting that the government may use monetary policy to encourage saving. [E 21, O 11].

Original language	English
Pages (from-to)	71-81
Number of pages	11
Journal	International Economic Journal
Volume	8
Issue number	2
DOIs	https://doi.org/10.1080/10168739400080014
Publication status	Published - 1994 Jun 1

All Science Journal Classification (ASJC) codes

Economics, Econometrics and Finance(all)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1080/10168739400080014

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Tests of Nonlinear Consumption Functions: The Case of Korea, Taiwan, Thailand and India

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

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