The impact of income distribution on consumption: a reassessment

Olivier Allain (1)

1 CES - Centre d'économie de la Sorbonne

For some Post Keynesian economists, functional income distribution affects economic activity and growth through its effects on investment, consumption and net exports. This study focuses on econometric issues about the consumption function. Post Keynesians generally fail to find a long-run relation between consumption, wages, profits and wealth. However, taking close econometric specifications, Neoclassical get this kind of relation. We lean on this result in order to re-examine the relation between income distribution and consumption. The empirical analysis applies on U.S. quarterly data for the period 1960-2007.

Mots clés: Consumption; Times series; Cointegration; VECM; ARDL

Domaines: Economies et finances

Olivier Allain. The impact of income distribution on consumption: a reassessment. 15th Conference of the Research Network Macroeconomics and Macroeconomic Policies, Oct 2011, Berlin, Germany. ⟨hal-00712657⟩