This paper examines the relationship between inflation and real income in Australia, Canada, Finland, New Zealand …, Spain, Sweden and the UK which have adopted a "formal" policy of low or zero inflation target. Using cointegration analysis … and a vector error correction model (VECM), it is found that the long-run relationship between inflation and real income …

This study uses Cointegration and an Error Correction Model to investigate the responsiveness of household consumption … to changes in income in Sierra Leone covering the periods 1980 to 2020. The study relies on annual time series data on …, consumption depends entirely on income. The results show that in the short-run, 85 percent of additional income goes toward …