This paper deals with an alternative approach to treating seasonality in error correction models for consumption with a parsimonious parameterization as proposed by Harvey and Scott. We introduce an unobserved seasonal component into an error correction model for Austrian consumer expenditures...

This paper analyzes the nature of seasonal fluctuations in quarterly observations for Austrian consumption and income data. We begin with univariate tests of the order of integration and then move on to tests of cointegration. Seasonally adjusted as well as raw data are used in these tests. In...