Modelling Aggregate UK Consumption Functions: A Time-Series Analysis (original) (raw)
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Consumption Trends in the UK, 1975–99
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Consumption Out of Different Types of Income in the U.K
Bulletin of Economic Research, 1980
We note that this is not always the case in existing economic models; see, for example, 8 Quarterly data is not used in this study due to the apparent difficulties of constructing the Shephard et al. (1975). non-available quarterly series on disaggregated disposable income. ati 2. PRELIMINARY CONSIDERATIONS (a) The Income Varinbfes Three income categories are used in this study: wages and salaries (Yf), income from self-employment and unearned income (Y :) , and a residual category consisting mainly of transfer payments (Y'f). All income is calculated net of tax and national insurance payments. As the income categories overlap, i.e. certain households may receive all three types of income, the allocation of tax is to some extent arbitrary. The decision to include the self-employed in the second category was taken for two reasons. The income of the first category, coming mainly under the PAYE system will be known with more or less complete accuracy, whereas understatement of income may be prevalent for both the groups in category two. Income from self-employment is likely to be more variable than wages and salaries.' Certain income is paid in kind or is imputed income. This mainly concerns food and housing and includes the imputed rent of owner-occupied housing.2 CONSUMPTION OUT OF DIFFERENT TYPES O F INCOhIE
2007
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Consumption, Income and Interest Rates: Reinterpreting the Time Series Evidence
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