Understanding consumption in Open Economies: Argentina 1927-2003

In a country prone to currency crises and great changes in relative prices, the prevailing paradigm cannot fully explain consumption behavior. To tackle this problem this paper analyzes consumption in a two goods open economy framework. The fundamentals of private consumption are: domestic product,...

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Autor principal: Gay, Alejandro
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2005
Materias:
Ciencias Económicas
consumption
open-economy
cointegration
Argentina
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/168831
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-168831
record_format dspace
spelling I19-R120-10915-1688312024-08-21T20:02:11Z http://sedici.unlp.edu.ar/handle/10915/168831 Understanding consumption in Open Economies: Argentina 1927-2003 Gay, Alejandro 2005-11 2005 2024-08-21T16:35:21Z en Ciencias Económicas consumption open-economy cointegration Argentina In a country prone to currency crises and great changes in relative prices, the prevailing paradigm cannot fully explain consumption behavior. To tackle this problem this paper analyzes consumption in a two goods open economy framework. The fundamentals of private consumption are: domestic product, net foreign assets income, tradable and nontradable productivities, and terms of trade. These five fundamentals are used to study the log-run consumption function in Argentina, applying different estimators of cointegrating vectors. We find that Argentina’s consumption volatility may be explained by external and domestic shocks transmitted through foreign sector related elasticities. The new framework developed in the paper, allows to explain the puzzle of excess volatility of consumption relative to that of output (GDP), present in some countries, particularly in Argentina. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
consumption
open-economy
cointegration
Argentina
spellingShingle Ciencias Económicas
consumption
open-economy
cointegration
Argentina
Gay, Alejandro
Understanding consumption in Open Economies: Argentina 1927-2003
topic_facet Ciencias Económicas
consumption
open-economy
cointegration
Argentina
description In a country prone to currency crises and great changes in relative prices, the prevailing paradigm cannot fully explain consumption behavior. To tackle this problem this paper analyzes consumption in a two goods open economy framework. The fundamentals of private consumption are: domestic product, net foreign assets income, tradable and nontradable productivities, and terms of trade. These five fundamentals are used to study the log-run consumption function in Argentina, applying different estimators of cointegrating vectors. We find that Argentina’s consumption volatility may be explained by external and domestic shocks transmitted through foreign sector related elasticities. The new framework developed in the paper, allows to explain the puzzle of excess volatility of consumption relative to that of output (GDP), present in some countries, particularly in Argentina.
format Objeto de conferencia
Objeto de conferencia
author Gay, Alejandro
author_facet Gay, Alejandro
author_sort Gay, Alejandro
title Understanding consumption in Open Economies: Argentina 1927-2003
title_short Understanding consumption in Open Economies: Argentina 1927-2003
title_full Understanding consumption in Open Economies: Argentina 1927-2003
title_fullStr Understanding consumption in Open Economies: Argentina 1927-2003
title_full_unstemmed Understanding consumption in Open Economies: Argentina 1927-2003
title_sort understanding consumption in open economies: argentina 1927-2003
publishDate 2005
url http://sedici.unlp.edu.ar/handle/10915/168831
work_keys_str_mv AT gayalejandro understandingconsumptioninopeneconomiesargentina19272003
_version_ 1809234732660031488

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