Aggregate demand shifts, income distribution, and the Linder hypothesis

Article Abstract:

Intra-industry trade empirical literature has underscored the importance of non-homothetic preferences and earnings in determining combined demand and trade behavior. Mathematical models are used to establish the effect, instead, of income distribution on the relationship between non-homothetic preferences and trade patterns. Results indicate that income-driven demand shifts toward Linder goods suggest that per capita income levels and income distribution are both significant factors in accounting for expenditure behavior.

Author: Francois, Joseph F., Kaplan, Seth
Publisher: MIT Press Journals
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1996
Research, Models, International trade, Income distribution, Supply and demand

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Periodic cointegration: representation and inference

Article Abstract:

A new method of analyzing stable relationships between nonstationary seasonal time series is presented. The approach is derived from a periodic error correction model which lets long-run effects and adjustment parameters change each season. The analysis is applied to an aggregate Swedish consumption model.

Author: Franses, Philip Hans, Boswijk, H. Peter
Publisher: MIT Press Journals
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1995
Analysis, Economic aspects, Sweden, Consumption (Economics), Seasonal variations (Economics)

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