Consumption, wealth and credit liberalisation in Australia.

Working paper

A stable, long run consumption equation is estimated for Australia using quarterly data from 1977(2) to 2008(2). The model incorporates non-property income, income expectations, uncertainty, disaggregated household wealth, demography and, importantly, a relaxation in household credit conditions attributable to financial liberalisation and innovation (FLIB). Over 1977-2008, the log consumption to income ratio rose by around 14 percentage points. The relaxation of households’ downpayment and co...

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Authors: Williams, D

• Publisher: Department of Economics (University of Oxford)
• Series: Discussion paper series
• Publication date: 2010-06-01
• Language: English