Modeling real private consumption expenditure in Bulgaria after the currency board implementation (1997-2005)

Aleksandar Vasilev

In this paper, an econometric model of consumption in Bulgaria for the period 1997-2005 is constructed. The Error-Correction Model (ECM) approach is employed and long-run relationship between household consumption and income was found. The primary purpose of this empirical paper is to get a better understanding of the factors driving household consumption in Bulgaria and to estimate a consumption function to be used for medium-term forecasting. It is shown that all households behave in a Keynesian way, basing their consumption decisions on current income.

MoreLess

Year of publication:	May 9, 2015
Authors:	Vasilev, Aleksandar
Publisher:	[Kiel : ZBW
Subject:	Keynesian consumption function \| Error-correction model \| Bulgarien \| Bulgaria \| Privater Konsum \| Private consumption \| Currency-Board-System \| Currency board \| Konsumtheorie \| Consumption theory \| Makroökonomische Konsumfunktion \| Aggregate consumption function \| Schätzung \| Estimation