On the Stability of the Excess Sensitivity of Aggregate Consumption Growth in the USA

2016 ◽  
Vol 32 (4) ◽  
pp. 819-840 ◽  
Gerdie Everaert ◽  
Lorenzo Pozzi ◽  
Ruben Schoonackers
1977 ◽  
Vol 9 (4) ◽  
pp. 461-475 ◽  
T R Smith

An important problem of general interest concerns the aggregate response of a system to increasing density (or decreasing effective distance between units). An analysis is made for a system in which the individual responses to changing density are smooth. The analysis is presented in terms of the ‘overbanked’ situation of the USA in the 1920s. Models are derived from micro-economic principles concerning the interaction of two banks in competition for deposits as road transportation decreases in relative cost. The conclusion drawn from analysis of the models is that aggregate deposits may increase in a smooth or in a discontinuous (jump) fashion, the jump depending on the nature of an individual banker's response function and occurring despite smooth individual responses. In the case where the system is always in equilibrium, the jump may be a catastrophe in the sense described by Thorn. The analysis indicates that improvements in road transportation may have significantly reduced the stability of the banking system to a point of catastrophic collapse (as well as, for example, overzealous chartering by the authorities). The analysis should have application to many other situations in which decreasing effective distance is an important fact.

FEDS Notes ◽  
2018 ◽  
Vol 2018 (2127) ◽  
Laura Feiveson ◽  
Alvaro Mezza ◽  
Kamila Sommer ◽  

1999 ◽  
Vol 89 (4) ◽  
pp. 902-920 ◽  
Marianne Baxter ◽  
Urban J Jermann

Empirical research on the permanent-income hypothesis (PIH) has found that consumption growth is excessively sensitive to predictable changes in income. This finding is interpreted as strong evidence against the PIH. We propose an explanation for apparent excess sensitivity that is based on a quantitative equilibrium model of household production in which permanent-income consumers respond to shifts in sectoral wages and prices by substituting work effort and consumption across home and market sectors. Although the PIH is true, this mechanism generates apparent excess sensitivity because market consumption responds to predictable income growth. (JEL D13, E10, E21).

2019 ◽  
Vol 25 (85) ◽  
pp. 64-88
Janez Juvan

Abstract The article presents research on the international community’s engagement in the countries of the Western Balkans in the past and their possible approach in the future. The focus of our research is on the functioning of mechanisms through which the international community performs certain tasks in the region. These interventions are primarily political, in the form of conferences, political programmes, consultations, pressures and continuous persuasion. Economic initiatives follow afterwards. By using different reform approaches, international institutions try to improve cooperation with the European Union (EU) and countries such as the USA, Russia, Turkey and China. Our research attempts to identify possible methods and new solutions for individual cases of conflict in Western Balkans countries, especially where the international community is actively involved. On this basis, we created a more holistic approach. The application of these measures could make the necessary reforms of the future easier. Our approach emphasises all the elements of security that are essential to the stability of the region and for the prevention of conflicts in the future.

Subject West Africa cocoa outlook. Significance Strong demand for chocolate is helping to lessen the global cocoa supply glut. This could underpin a more stable recovery in prices amid bumper crops in the world’s top two cocoa growers, the Ivory Coast and Ghana. On the supply side, efforts to reduce production will likely face headwinds over practical fiscal and livelihoods considerations. Impacts The stability of global consumption growth may be clouded by one-off domestic factors driving growth in some countries. Output restrictions in Ivory Coast and Ghana may be undermined if planned Nigerian and Cameroonian increases of cocoa materialise. Quality issues will be a natural hedge against smuggling in Nigeria and Cameroon where beans are sold at a discount.

2021 ◽  
Vol 11 (4) ◽  
pp. 1572
Sara Alvarez-Gonzalez ◽  
Jose Rodriguez-Fernandez ◽  
Ana Belen Porto-Pazos ◽  
Alejandro Pazos ◽  
Francisco Cedron

The study of the intestinal microbiota is one of the biggest challenges in the current clinical environment. In this context, probiotics have been a focus of interest to achieve the stability of the intestinal microbiota, due to probiotics’ key role in its regulation. The development of an automated system that allows practitioners to easily search for the optimal probiotic is the main objective of this study. Although it is true that there have been previous attempts of applications with this purpose, only authorized probiotics available in the countries of origin, Canada and the USA, were included. This event was a limitation when looking for those endorsed in other countries such as Spain. Thus, a system has been developed from free and multiplatform technologies that allow its use without any cost, finding, in a simple way, those probiotics that would be ideal for each pathology, either from a browser or from a cell phone.

2012 ◽  
Vol 34 (3) ◽  
pp. 355-377 ◽  

The investigation of aggregate consumption underwent a radical change in the USA during the 1940s and 1950s. Principles deriving from the American Institutionalist tradition attained their greatest popularity in Duesenberry’s formulation just before they were rapidly abandoned. This paper examines this turning point by comparing Duesenberry’s relative income hypothesis and Friedman’s permanent income hypothesis. This also makes it possible to identify a particular feature of Duesenberry’s analysis—its heterogeneity—which must be taken into consideration by those seeking a return to Institutionalist principles in the analysis of aggregate consumption.

Sign in / Sign up

Export Citation Format

Share Document