| Popis: |
Purpose: The objective of the study is to estimate consumption function for China and G7countries. Methodology: The study applied ARDL approach to estimate consumption function over the period 1985 to 2013. Findings: The results of the study indicate that Gross Domestic Product (GDP) and wealth are the most important determinants of aggregate consumption in both short and long run. However, real interest rate, negatively affect the aggregate private consumption both in the long and short run, apart from Canada, similarly, unemployment rate have negative effect of aggregate consumption in all cases. Recommendations: This study open new directions for further research. |
