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Modelling Consumption On The Basis Of The Complete System Of National Accounts In Serbia – The Wealth Effect

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  • Ivana Jovanović

Abstract

System of National Accounts (SNA) data on the financial and non-financial assets of the household sector are not currently being compiled by official statistics in Serbia, but this situation will change on the path of convergence to the standards of EU economic and monetary union. This paper, starting from models of consumption in developed and some former transition countries that take into account the wealth effect based on the whole SNA, analyses if this effect is taking place in Serbia. Research, based on available data sources, has shown that the wealth variables of securities and net financial wealth enter the consumption function in Serbia and it is yet to be seen if this model will be different at some higher stage of economic development or with better data.

Suggested Citation

  • Ivana Jovanović, 2016. "Modelling Consumption On The Basis Of The Complete System Of National Accounts In Serbia – The Wealth Effect," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 61(208), pages 49-72, January -.
    • Handle: RePEc:beo:journl:v:61:y:2016:i:208:p:49-72
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    References listed on IDEAS

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    3. Brodin, P Anders & Nymoen, Ragnar, 1992. "Wealth Effects and Exogeneity: The Norwegian Consumption Function 1966(1)-1989(4)," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 431-454, August.
    4. Alessio Ciarlone, 2012. "Wealth effects in emerging economies," Temi di discussione (Economic working papers) 843, Bank of Italy, Economic Research and International Relations Area.
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    More about this item

    Keywords

    consumption function; national accounts; wealth effect; time series analysis;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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