Consumption, Saving, Investment, and Unemployment. SVAR Tests of the Effects of Changes in the Consumption-Saving Pattern

  1. Roberto Bande Ramudo 1
  2. Manuel Fernández Grela 1
  3. Mª Dolores Riveiro García 1
  1. 1 Universidade de Santiago de Compostela
    info

    Universidade de Santiago de Compostela

    Santiago de Compostela, España

    ROR https://ror.org/030eybx10

Journal:
Documentos de Traballo. Análise Económica

ISSN: 1138-0713

Year of publication: 2011

Issue: 45

Pages: 1-27

Type: Working paper

DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Documentos de Traballo. Análise Económica

Abstract

In this paper we aim to provide information about the transmission mechanism at work between investment and unemployment by looking at the consumption-saving pattern as a determinant of investment behaviour. Our starting hypothesis is that permanent shifts in the consumption-saving pattern will have permanent effects on investment, with subsequent consequences for the unemployment rate. To test this hypothesis we build an SVAR model for the Spanish economy seeking information about the response of the four relevant macroeconomic variables (consumption, saving, investment and unemployment) to simulated shocks imposed on the system.

Data source: Dialnet