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Savings Propensities from Wage and Non-Wage Income

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  • Mrufin, A. J

Abstract

In econometrics, the consumption function has been subjected to continual debate and respecification. This paper reinvestigates some aspects of the relation between incomes and consumption behaviour in the UK 1963 - 76, and, in particular, focuses on the study by Klein, Ball et al (1061) which attempts to take account of the role of income distribution. The questions of parameter stability and misspecification are considered in detail, and the conclusion is reached that a correct specification of the models presented in this paper has yet to be found.

Suggested Citation

  • Mrufin, A. J, 1980. "Savings Propensities from Wage and Non-Wage Income," The Warwick Economics Research Paper Series (TWERPS) 174, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:174
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/1978-1988/twerp174.pdf
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