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Consumption and Wealth in Australia

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  • Alvin Tan
  • Graham Voss

Abstract

This paper examines the relationship between consumption and wealth in Australia. We find a steady‐state relationship between non‐durables consumption, labour income and aggregate household wealth for the period 1988–1999. We also find that changes in both non‐financial and financial assets have significant but different short‐run and long‐run effects in dynamic consumption models. Finally, we place our results within the broader empirical literature and examine whether they are consistent with standard theories of consumption.

Suggested Citation

  • Alvin Tan & Graham Voss, 2003. "Consumption and Wealth in Australia," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 39-56, March.
    • Handle: RePEc:bla:ecorec:v:79:y:2003:i:244:p:39-56
    DOI: 10.1111/1475-4932.00077
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    References listed on IDEAS

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