CONSUMPTION FUNCTION: AN ECONOMETRIC STUDY FOR JORDAN

Date

1991

Author

MRAYYAN, Nader

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This paper presents and examines the aggregate consumption pattern in Jordan, through estimating four forms of consumption functions. Special modifications are applied to the estimated functions to meet the Jordanian conditions. The main findings were that the four estimated functions have given the same value of long-term MPC which is found to be about 0.62. At the same time, it was found that the long-term APC is equal to the long-term MPC. The estimated value of the constant term for the various functions was very small and statistically insignificant. The paper has also showed that GDP, remittances by Jordanians working abroad, and past consumption habits play a significant role in determining the private consumption spending in Jordan.

URI

https://hdl.handle.net/11511/110646

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Department of Economics, Article