The excess smoothness and sensitivity of consumption in the V4 countries
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F19%3A43917435" target="_blank" >RIV/62156489:43110/19:43917435 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.11118/actaun201967061653" target="_blank" >https://doi.org/10.11118/actaun201967061653</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.11118/actaun201967061653" target="_blank" >10.11118/actaun201967061653</a>
Alternative languages
Result language
angličtina
Original language name
The excess smoothness and sensitivity of consumption in the V4 countries
Original language description
This paper contributes to the debate on the Permanent Income Hypothesis (PIH) and excess consumption smoothness and sensitivity in the context of conditions in the V4 countries. This paper also shows results contrary to the belief of the Permanent Income Hypothesis/Random Walk Hypothesis that the change in consumption is an innovation which is not predictable by lagged saving or lagged income change. The paper tests the implication of the Permanent Income Hypothesis/Random Walk Hypothesis, using quarterly aggregate data for 1995-2017 in the V4 countries. A vector autoregression for saving and changes in disposable income is used to generate a forecast of declines in disposable income. As a result, when income changes abruptly, the resulting change in consumption is much smoother and conversely, when changes in income are anticipated, consumption responds sensitively. The aggregate consumption is both excessively smooth relative to the new information causing consumers' revision of previous expectations about current and future income, and excessively sensitive to lagged income growth.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
10103 - Statistics and probability
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
ISSN
1211-8516
e-ISSN
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Volume of the periodical
67
Issue of the periodical within the volume
6
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
11
Pages from-to
1653-1663
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85077713274