The ratio of consumption to total household wealth (i.e., tangible assets plus unobserved human wealth) is commonly … relationship between consumption, assets and earnings (i.e., the variable "cay"). The evidence in favor of a stable cointegrating … unobserved component model applied to US data over the period 1951Q4-2016Q4. The regression of consumption on assets and earnings …

King, Plosser, Stock, and Watson (1991) depends mainly on the time-series behavior of the reduced form consumption residual …. A permanent income hypothesis interpretation of this finding is that consumption fully reflects the implications of long …-lived shocks for the common stochastic trend in consumption, investment, and output. Further, for the three variable model, shocks …

This note shows that German real GDP follows a trend-stationary process. Both tests which have trend-stationarity as …

This note shows that German real GDP follows a trend-stationary process. Both tests which have trend-stationarity as …