Abstract

SOLORZANO MENDOZA, Ricardo Alan. Permanent consumption under Robert Hall's conception. An econometric study for South America, 1960-2019. Anál. econ. [online]. 2021, vol.36, n.92, pp.45-62.  Epub Oct 04, 2021. ISSN 2448-6655.  https://doi.org/10.24275/uam/azc/dcsh/ae/2021v36n92/solorzano.

The aim of this paper consists in analyzing the behavior of the private per capita consumption that was theoretically described by Robert Hall. The conception of this author is that consumption can be formalized as a random walk, this idea comes from the conclusion about the theoretical approaches of Irving Fisher; M. Friedman; Ando and Modigliani. To prove if consumption has or not this pattern, it is instrumented an analysis for South America with a dynamic panel data model using the method proposed by Arellano and Bond, for the period 1960-2019.

Keywords : Consumption; lagged consumption; Panel data models; E21; C23.