Citation
Solarin, Sakiru Adebola and Shahbaz, Muhammad and Stewart, Chris (2018) Is the consumption-income ratio stationary in African countries? Evidence from new time series tests that allow for structural breaks. Applied Economics Letters, 50 (38). pp. 4122-4136. ISSN 1350-4851 Full text not available from this repository.
Official URL: https://doi.org/10.1080/00036846.2018.1441515
Abstract
This article examines whether the consumption-income ratio is stationary in 50 African countries. We use the residual augmented least squares (RALS-LM) unit root test that allows for structural breaks. The empirical evidence shows that the consumption income ratio is stationary around structural breaks in most (44 out of 50) African countries. This is consistent with the predictions of most economic theories. The general finding of mean reversion implies that (policy) shocks are likely to have only temporary effects on the consumption-income ratio in most African countries
Item Type: | Article |
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Uncontrolled Keywords: | Income distribution, Consumption-income ratio, African countries, unit root tests, structural breaks |
Subjects: | H Social Sciences > HB Economic theory. Demography > HB522-715 Income. Factor shares |
Divisions: | Faculty of Business (FOB) |
Depositing User: | Ms Rosnani Abd Wahab |
Date Deposited: | 11 Nov 2020 12:00 |
Last Modified: | 11 Nov 2020 12:00 |
URII: | http://shdl.mmu.edu.my/id/eprint/7334 |
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