The adjustment of consumption to income changes across Chinese provinces

Joseph Dejuan; Tony S. Wirjanto; Xinpeng Xu

The adjustment of consumption to income changes across Chinese provinces

Joseph Dejuan, Tony S. Wirjanto, Xinpeng Xu

Research output: Journal article publication › Journal article › Academic research › peer-review

Abstract

This paper examines a key stochastic implication of the canonical version of the permanent income model that new information about future income should give rise to an adjustment in consumption equal in magnitude to the adjustment in permanent income. Using data from 29 Chinese provinces, the empirical results are consistent with the model.

Original language	English
Pages (from-to)	235-253
Number of pages	19
Journal	Annals of Economics and Finance
Volume	17
Issue number	2
Publication status	Published - 1 Nov 2016

Keywords

Chinese provinces
Consumption
Permanent income. JEL Classification Number: E21

ASJC Scopus subject areas

Finance
Economics and Econometrics

More information

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Cite this

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