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Corporate Consumption: A Postscript

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  • MICHAEL SUMNER

Abstract

Corporate retentions have a well‐determined effect on consumers’ expenditure, which cannot be explained by an impact of retentions on capital gains and thence on household wealth; on the contrary, increases in retentions are associated with subsequent capital losses. The timing of the relationship between retained profits and expenditure is consistent with direct corporate purchases of on‐the‐job consumption.

Suggested Citation

  • Michael Sumner, 2008. "Corporate Consumption: A Postscript," Manchester School, University of Manchester, vol. 76(2), pages 196-203, March.
    • Handle: RePEc:bla:manchs:v:76:y:2008:i:2:p:196-203
    DOI: 10.1111/j.1467-9957.2007.01056.x
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    Cited by:

    1. Bill Martin, 2009. "Resurrecting The U.K. Historic Sector National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 737-751, September.
    2. Bill Martin, 2009. "An Augmented UK Private Expenditure Function," Working Papers wp384, Centre for Business Research, University of Cambridge.

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