Consumption in South America: myopia or liquidity constraints?

Autores

  • Fábio Augusto Reis Gomes Insper Institute
  • Lourenço Senne Paz Syracuse University; Dept. of Economics

DOI:

https://doi.org/10.1590/S1413-80502010000200001

Palavras-chave:

South America, consumption, permanent income, liquidity constraints, myopia

Resumo

In this paper, we consider Brazil, Colombia, Peru, and Venezuela for a study on aggregate consumption behavior, in which we test the life cycle-permanent income hypothesis prediction that consumption growth depends only on the interest rate. Nevertheless, our results suggest that in general predicted income is a relevant covariate. We checked for some possible reasons behind this result, namely liquidity constraints, myopia and perverse asymmetry. We found support for liquidity constrained consumers in Brazil and Colombia, and perverse asymmetry for Peru. Finally, the results were uninformative about consumption in Venezuela.

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Publicado

2010-06-01

Como Citar

Gomes, F. A. R., & Paz, L. S. (2010). Consumption in South America: myopia or liquidity constraints?. Economia Aplicada, 14(2), 129-145. https://doi.org/10.1590/S1413-80502010000200001

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