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Modelling the Behaviour of Households

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Macroeconometric Models

Part of the book series: Advanced Studies in Theoretical and Applied Econometrics ((ASTA,volume 47))

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Abstract

Consumption function in its development is outlined. The habit formation is introduced. The dependence of real disposable incomes and real personal wealth is analyzed. The concepts of permanent income and long life income are introduced. The empirical results obtained in multisectoral models are shown.

The equations specifying the investment demand functions are elaborated. The labour supply functions are derived from maximizing the consumers utility.

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Notes

  1. 1.

    Most comprehensive description of the modifications can be found in Welfe (1991) and Welfe and Welfe (2004).

  2. 2.

    Several authors look at the impact of the consumption-total wealth ratio, i.e. of α, on the expected stock returns (cf. Lettau and Ludvigson 2001, and Zachłod-Jelec 2010).

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Authors and Affiliations

  1. Institute of Econometrics, University of Łódź, Rewolucji 1905 r. 41, Łódź, 90-214, Poland

    Władysław Welfe

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  1. Władysław Welfe
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Correspondence to Władysław Welfe .

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Welfe, W. (2013). Modelling the Behaviour of Households. In: Macroeconometric Models. Advanced Studies in Theoretical and Applied Econometrics, vol 47. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-34468-8_16

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