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Consumption, investment and unemployment: SVAR tests of the effects of changes in the consumption-saving pattern

Year: 2014

Type: article

Abstract: In this paper, we provide evidence supporting the hypothesis that permanent shifts in the consumption-saving pattern will have permanent effects on investment, with subsequent consequences for the unemployment rate, by estimating a structural vector autoregression model for the Spanish economy. Our results suggest a significant impact of consumption shocks on unemployment through changes in investment.

Source: Cogent Economics & Finance

DOI: 10.1080/23322039.2014.933676

Authors: Roberto Bande-Ramudo, Manuel Fernandez-Grela, Dolores Riveiro-Garcia

Institution: Universidade de Santiago de Compostela

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,165