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Title: | Testing for the manifestation of consumption asymmetries across vulnerable and non-vulnerable economies |
Authors: | Theuma, Mark (2010) |
Keywords: | Consumption (Economics) Demand (Economic theory) Supply and demand |
Issue Date: | 2010 |
Citation: | Theuma, M. (2010). Testing for the manifestation of consumption asymmetries across vulnerable and non-vulnerable economies (Master's dissertation). |
Abstract: | Mainstream theory on aggregate demand conveys that consumption reacts symmetrically to positive and negative shocks in current income of the same extent. As a result, the marginal propensity of consumption and the corresponding multiplier process follow a linear pattern. The symmetry of aggregate demand presumed by conventional economic theory portrays the manifestation of smooth and symmetric business-cycles. Modern theory on aggregate demand challenges the conventional presupposition of symmetric business-cycles. Indeed, the application of new methodological approaches to macroeconomic datasets shows that consumption reacts asymmetrically to exogenous positive and negative changes in income of the same extent. Consequently, the non-linearity of the marginal propensity of consumption and the corresponding multiplier process develop asymmetric business-cycles. Theoretical underpinnings convey that consumption asymmetries arise either due to liquidity constraints or loss aversion. |
Description: | M.A.ECONOMICS |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/76965 |
Appears in Collections: | Dissertations - FacEma - 2010 Dissertations - FacEMAEco - 1971-2010 |
Files in This Item:
File | Description | Size | Format | |
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M.A.ECONOMICS_Theuma_Mark_2010.pdf Restricted Access | 15.66 MB | Adobe PDF | View/Open Request a copy |
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