A note on the average propensity to consume, wealth and threshold adjustment

C-Tier
Journal: Economic Modeling
Year: 2013
Volume: 35
Issue: C
Pages: 309-313

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We explore the connection between the average propensity to consume (APC) and wealth to income ratio (WY) in the US. We find evidence of a long-run relationship characterised by threshold error correction. It is the APC that responds to long-run disequilibrium where the speed of adjustment is asymmetric insofar as being most likely fastest in regimes characterised by a high APC and low WY.

Technical Details

RePEc Handle
repec:eee:ecmode:v:35:y:2013:i:c:p:309-313
Journal Field
General
Author Count
2
Added to Database
2026-01-29