			Home About us Contact

Aggregate Consumption (aggregate + consumption)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	80%

Selected Abstracts

Disaggregate Wealth and Aggregate Consumption: an Investigation of Empirical Relationships for the G7*

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2003
Joseph P. Byrne
To date, studies of wealth effects on consumption have mainly used aggregate wealth definitions on a single-country basis. This study seeks to break new ground by analysing disaggregated financial wealth in consumption functions for G7 countries. Contrary to earlier empirical work, we find that illiquid financial wealth (i.e. securities, pensions and mortgage debt) tends to be a more important long-run determinant of consumption than liquid financial wealth. These results imply potential instability in consumption functions employing aggregate wealth. Our results are robust using SURE; when testing with a nested specification; and when using a linear model. [source]

Per capita alcohol consumption and liver cirrhosis mortality in 14 European countries

ADDICTION, Issue 1s1 2001
Mats Ramstedt
Aim. To estimate the effects of changes in per capita alcohol consumption on liver cirrhosis mortality rates in various demographic groups across 14 western European countries. Method. Yearly changes in gender- and age-specific mortality rates from 1950 to 1995 were analysed in relation to corresponding yearly changes in per capita alcohol consumption, employing the Box-Jenkins technique for time series analysis. Country-specific estimates were pooled into three regions: northern, central and southern Europe. Measurements. Cirrhosis mortality data for 5-year age groups were converted into gender-specific mortality rates in the age groups 15 +, 15-44, 45-64 and 65 + and expressed as the number of deaths per 100 000 inhabitants. Alcohol sales were used to measure aggregate consumption, which were calculated into consumption (litres 100% alcohol) per year per inhabitant over 14 years of age and weighted with a 10-year distributed lag model. Findings. The country-specific analyses demonstrated a positive and statistically significant effect of changes in per capita consumption on changes in cirrhosis mortality in 13 countries for males and in nine countries for females. The strongest alcohol effect was found in northern Europe, due mainly to a large effect in Sweden. Moreover, when different age groups were analysed significant estimates were obtained in 29 of 42 cases for males and in 20 of 42 cases for females. Most of the non-significant estimates were found in older age groups. Conclusions. The results suggest clearly that a change in the overall level of drinking as a general rule affect cirrhosis mortality in different drinking cultures as well as among different demographic groups. Moreover, the findings correspond with what is expected from the collectivity theory of drinking cultures. [source]

The big picture: Obesity, consumption, and food production

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2006
Robert C. Johansson
Reducing the percentage of Americans who are either overweight or obese to meet public health objectives may influence agricultural production. The authors' results show that reducing aggregate consumption by 6% to meet public health objectives with no increase in overall physical activity could reduce production of agricultural commodities and reduce net returns to producers by $3.5 billion. However, if consumption is reduced by 2% concomitantly with a marginal increase in physical activity, similar health outcomes could be achieved at much less cost ($1.3 billion). Conversely, continuing obesity trends may enhance returns to agricultural production by $1.3 billion annually. Changes in agricultural activities would likely be variable across the landscape. Results indicate that the largest potential changes in agricultural producer net returns (positive or negative) would occur in the Corn Belt and the Lake States. There, crop acreage could fall by as much as 650,000 hectares. [EconLit citations: Q130, Q180] © 2006 Wiley Periodicals, Inc. Agribusiness 22: 491,503, 2006. [source]

STOCK PRICE VOLATILITY, NEGATIVE AUTOCORRELATION AND THE CONSUMPTION,WEALTH RATIO: THE CASE OF CONSTANT FUNDAMENTALS

PACIFIC ECONOMIC REVIEW, Issue 2 2010
Charles Ka Yui Leung
Based on infinite horizon models, previous theoretical works show that the empirical stock price movement is not justified by the changes in dividends. The present paper provides a simple overlapping generations model with constant fundamentals in which the stock price displays volatility and negative autocorrelation even without changes in dividend. The horizon of the agents matters. In addition, as in recent empirical works, the aggregate consumption,wealth ratio ,predicts' the asset return. Thus, this framework may be useful in understanding different stylized facts in asset pricing. Directions for future research are also discussed. [source]

Consumption, Aggregate Wealth, and Expected Stock Returns

THE JOURNAL OF FINANCE, Issue 3 2001
Martin Lettau
This paper studies the role of fluctuations in the aggregate consumption,wealth ratio for predicting stock returns. Using U.S. quarterly stock market data, we find that these fluctuations in the consumption,wealth ratio are strong predictors of both real stock returns and excess returns over a Treasury bill rate. We also find that this variable is a better forecaster of future returns at short and intermediate horizons than is the dividend yield, the dividend payout ratio, and several other popular forecasting variables. Why should the consumption,wealth ratio forecast asset returns? We show that a wide class of optimal models of consumer behavior imply that the log consumption,aggregate wealth (human capital plus asset holdings) ratio summarizes expected returns on aggregate wealth, or the market portfolio. Although this ratio is not observable, we provide assumptions under which its important predictive components for future asset returns may be xpressed in terms of observable variables, namely in terms of consumption, asset holdings and labor income. The framework implies that these variables are cointegrated, and that deviations from this shared trend summarize agents' expectations of future returns on the market portfolio. [source]