Household Consumption in Japan - Role of Income and Asset Developments

Vihriälä, Erkki

doi:10.2139/ssrn.2929418

Cited by 1 publication

(2 citation statements)

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“…Similarly, Bonsu & Muzindutsi (2017) conducted research in Ghana using variance decomposition, Granger causality, and the impulse response function analysis. They concluded the identical findings to Vihriala (2017).…”

Section: Introductionmentioning

confidence: 59%

“…Their findings show that the impact is much more substantial in the context of low-income and high-income nations; however, the effect is minimal in middle-income countries. Vihriala (2017) examined the effects of Mexico's income and assets using the instrumental variable approach. They concluded that rises in pension shares enhance consumption-to-income ratios.…”

Section: Introductionmentioning

confidence: 99%

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Nexus between Consumption, Income and Price Changes: Asymmetric Evidence from NARDL Mode

et al. 2022

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Previous research has primarily examined the link between price, income, and consumer spending using linear regression models. On the other hand, the latest evidence shows an asymmetric link among economic and financial variables. We contribute to the literature by employing a novel technique known as the asymmetric ARDL model. This approach is used to investigate the impact of favorable and unfavorable changes in income and prices on household consumption. The results show that higher income has a substantial and beneficial effect on household expenditures in the short term and long term. On the other hand, a fall in income has no impact on consumer spending. Moreover, for most developing countries, price adjustments have a negligible effect on consumer expenditures. Our findings suggest that implementing the same policy initiatives across periods of rising and falling income and prices may result in potential losses.JEL Classification: E31, F31, C22

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Section: Introductionmentioning

confidence: 59%

Section: Introductionmentioning

confidence: 99%