Abstract
This study tests for parameter instability in the Spanish consumption function. To that end, a new test for time dependence of parameters is used and compared with other relevant tests. As opposed to other tests this new one is concerned with detecting parameter variation in frequency domain.
Notes
1 For a detailed study on this matter see Becker et al . (Citation2004).
2 The results are only slightly higher than those of Ludlow and Enders (Citation2000).
3 For instance, Wahid (Citation2000) analyses the stability of the Canadian consumption function, to that end he chooses 1974 as the break date for economic grounds.
4 All results are available upon request.