The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach
Autor(a) principal: | |
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Data de Publicação: | 2024 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/29963 |
Resumo: | Previous studies mainly focused on linear models to examine the relationship between price changes, income changes, and consumption expenditures. However, the recent literature supports the nonlinear relationship between economic and fnancial varia bles. This study contributes to the existing literature using a novel approach called the nonlinear ARDL model. This model helps to examine the efect of positive and nega tive shocks in income and price changes on consumption expenditures. Based on the nonlinear ARDL model, the fndings indicate that an increase in income signifcantly and positively afects household consumption expenditures in the short and long run. In contrast, a decrease in income does not signifcantly afect consumption. Likewise, price changes are unimportant in explaining the changes in consumption expendi tures in the selected countries. Therefore, our fndings support the use of this novel technique to examine the nonlinear nature of the relationship among the given vari ables. These fndings provide important policy implications concerning the positive and negative shocks of the exogenous variables on the dependent variables implying that devising the same policies during increasing and decreasing income and prices may lead to unfavorable consequences that hamper economic growth. |
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The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approachG7 countriesConsumptionNARDL modelDistributional asymmetryPrevious studies mainly focused on linear models to examine the relationship between price changes, income changes, and consumption expenditures. However, the recent literature supports the nonlinear relationship between economic and fnancial varia bles. This study contributes to the existing literature using a novel approach called the nonlinear ARDL model. This model helps to examine the efect of positive and nega tive shocks in income and price changes on consumption expenditures. Based on the nonlinear ARDL model, the fndings indicate that an increase in income signifcantly and positively afects household consumption expenditures in the short and long run. In contrast, a decrease in income does not signifcantly afect consumption. Likewise, price changes are unimportant in explaining the changes in consumption expendi tures in the selected countries. Therefore, our fndings support the use of this novel technique to examine the nonlinear nature of the relationship among the given vari ables. These fndings provide important policy implications concerning the positive and negative shocks of the exogenous variables on the dependent variables implying that devising the same policies during increasing and decreasing income and prices may lead to unfavorable consequences that hamper economic growth.SpringerRepositório da Universidade de LisboaWang, XiChang, Bisharat HussainUche, EmmanuelZhao, Qianli2024-01-26T11:06:24Z20242024-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/29963engWang, Xi ... [et al.] (2024). "The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach". Portuguese Economic Journal, 23(1):35-531617-9838 (electronic)10.1007/s10258-022-00229-8metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-28T01:34:48Zoai:www.repository.utl.pt:10400.5/29963Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:58:23.813075Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
title |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
spellingShingle |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach Wang, Xi G7 countries Consumption NARDL model Distributional asymmetry |
title_short |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
title_full |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
title_fullStr |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
title_full_unstemmed |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
title_sort |
The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach |
author |
Wang, Xi |
author_facet |
Wang, Xi Chang, Bisharat Hussain Uche, Emmanuel Zhao, Qianli |
author_role |
author |
author2 |
Chang, Bisharat Hussain Uche, Emmanuel Zhao, Qianli |
author2_role |
author author author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Wang, Xi Chang, Bisharat Hussain Uche, Emmanuel Zhao, Qianli |
dc.subject.por.fl_str_mv |
G7 countries Consumption NARDL model Distributional asymmetry |
topic |
G7 countries Consumption NARDL model Distributional asymmetry |
description |
Previous studies mainly focused on linear models to examine the relationship between price changes, income changes, and consumption expenditures. However, the recent literature supports the nonlinear relationship between economic and fnancial varia bles. This study contributes to the existing literature using a novel approach called the nonlinear ARDL model. This model helps to examine the efect of positive and nega tive shocks in income and price changes on consumption expenditures. Based on the nonlinear ARDL model, the fndings indicate that an increase in income signifcantly and positively afects household consumption expenditures in the short and long run. In contrast, a decrease in income does not signifcantly afect consumption. Likewise, price changes are unimportant in explaining the changes in consumption expendi tures in the selected countries. Therefore, our fndings support the use of this novel technique to examine the nonlinear nature of the relationship among the given vari ables. These fndings provide important policy implications concerning the positive and negative shocks of the exogenous variables on the dependent variables implying that devising the same policies during increasing and decreasing income and prices may lead to unfavorable consequences that hamper economic growth. |
publishDate |
2024 |
dc.date.none.fl_str_mv |
2024-01-26T11:06:24Z 2024 2024-01-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/29963 |
url |
http://hdl.handle.net/10400.5/29963 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Wang, Xi ... [et al.] (2024). "The asymmetric effect of income and price changes on the consumption expenditures : evidence from G7 countries using nonlinear bounds testing approach". Portuguese Economic Journal, 23(1):35-53 1617-9838 (electronic) 10.1007/s10258-022-00229-8 |
dc.rights.driver.fl_str_mv |
metadata only access info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
metadata only access |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer |
publisher.none.fl_str_mv |
Springer |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137068572475392 |