Dejuan, Joseph P.; Luengo-Prado, Maria Jose - In: Oxford Bulletin of Economics and Statistics 68 (2006) 1, pp. 81-99
This paper documents that region-level consumption exhibits excess sensitivity to lagged region-level income in Italy, Japan, Spain, the UK and West Germany. However, "region-specific" consumption exhibits substantially less sensitivity to lagged region-specific income. Moreover, excess...