linear trend for consumption, and one in which consumption trend is stochastic and whose implementation is performed using … the US economy, hence eliminating cyclical variability in consumption to some extent may be desirable in those countries …

We study empirically how close consumption-smoothing models employing present-value relationships fit data for Latin …-Test results for OLS estimates are consistent with consumption smoothing, while GLS are not. However, this last result contradicts … previous literature on this issue, which have found that Latin-American countries conform to consumption-smoothing models, with …

resemble actual business cycles has lead to the use of habit formation in consumption. For example, habit formation has been …