EN
Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration
Abstract
Considering consumption due to its pivotal role in economic growth and also aggregate demand and specially its long-run analysis have always been in the center of attention. In this study, we have estimated private consumption function, using ARDL approach and employing annual data during 1978-2012. Short-run elasticity of private consumption function regarding to its lag is 0.50 and to GDP is approximately 0.56. Also, the latter amount for long-run elasticity is 1.13. Furthermore, the estimation demonstrates a negative correlation between inflation and private consumption in both long-run and short-run relationships. ECM is estimated as well, and the coefficient is equal to -0.49 which shows the pace in which the private consumption function adjusts to its long-run equilibrium.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
April 1, 2016
Submission Date
April 1, 2016
Acceptance Date
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Published in Issue
Year 2016 Volume: 6 Number: 2
APA
Nikbin, B., & Panahi, S. (2016). Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration. International Journal of Economics and Financial Issues, 6(2), 653-659. https://izlik.org/JA37JL77FC
AMA
1.Nikbin B, Panahi S. Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration. IJEFI. 2016;6(2):653-659. https://izlik.org/JA37JL77FC
Chicago
Nikbin, Behnam, and Saman Panahi. 2016. “Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-Integration”. International Journal of Economics and Financial Issues 6 (2): 653-59. https://izlik.org/JA37JL77FC.
EndNote
Nikbin B, Panahi S (April 1, 2016) Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration. International Journal of Economics and Financial Issues 6 2 653–659.
IEEE
[1]B. Nikbin and S. Panahi, “Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration”, IJEFI, vol. 6, no. 2, pp. 653–659, Apr. 2016, [Online]. Available: https://izlik.org/JA37JL77FC
ISNAD
Nikbin, Behnam - Panahi, Saman. “Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-Integration”. International Journal of Economics and Financial Issues 6/2 (April 1, 2016): 653-659. https://izlik.org/JA37JL77FC.
JAMA
1.Nikbin B, Panahi S. Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration. IJEFI. 2016;6:653–659.
MLA
Nikbin, Behnam, and Saman Panahi. “Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-Integration”. International Journal of Economics and Financial Issues, vol. 6, no. 2, Apr. 2016, pp. 653-9, https://izlik.org/JA37JL77FC.
Vancouver
1.Behnam Nikbin, Saman Panahi. Estimation of Private Consumption Function of Iran: Autoregressive Distributed Lag Approach to Co-integration. IJEFI [Internet]. 2016 Apr. 1;6(2):653-9. Available from: https://izlik.org/JA37JL77FC