Using the standard linear model as a base, a unified theory of Bayesian Analysis of Cointegration Models is constructed … cointegration model …

necessary to acquire identification. Specifically, we show that a regression spline of consumption on income and assets yields a …

likely to have significant impacts on consumption, interest rates, and the current account. Empirical tests of these … on three empirical tests: effects on consumption, on interest rates, and on the current account balance. We find, across … results generally indicate that debt finance will increase the interest rate, will increase current consumption at the expense …