, Poland, Romania and Hungary). To achieve this performance, it embraced an economic growth model based on consumption rather … than investment. The government's strategy was to cut indirect taxes, increase public wages and old-age pensions but this … countries to adopt the euro. Reality has shown that an economy that relies too heavily on consumption and neglects investments …

Following Chow (1985 and 2010) and using annual data from 1951 to 2010 for Taiwan this paper estimates a consumption … function based on the permanent income hypothesis and an investment function based on the accelerations principle. The data … the two economies have different consumption functions is given. …

adverse effects on the growth rates of investment and durable consumption, whereas the in uence on non-durable consumption …We estimate the effects of stock market volatility on the growth rates of durable consumption, non-durable consumption …

. Further, while during earlier parts of our sample both a slowdown in consumption and investment growth contribute to a … reduction of GDP growth, during later parts, only the investment reaction contributes to the GDP slowdown. A variance … decomposition for consumption growth shows that the contribution of stock market volatility becomes negligible as we go from earlier …

, GDP exhibits asymmetric extreme dependence with employment, consumption and investment, with relatively greater dependence …

output changes. In the euro area investment is the predominant driver of output changes, while in the U.S. consumption shifts … investment, as the proximate cause for this fact, the source of the consumption difference remains a puzzle. … several potential explanations for it. While the evidence seems to point at differences in consumption responses, rather than …