Konsum und Vermögen : eine quantitative Analyse für Deutschland

The study follows Modiglianis "Life Cycle Hypothesis" and surveys the influence of private income and wealth to private consumption. Dealing with data for the unified Germany from 1991 to 2002 linear regressions indicate a strong positive relationship between consumption and income. The dependency from wealth, which is presented in the literature, cannot be confirmed. Analysis with error-correction-models leads to a different result. First evidence is found for nonseasonally, but not for seasonally integrated relations: This estimation shows the influence of both variables, income and wealth, on consumption.