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Applied Economics Letters Volume 2, 1995 - Issue 10
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Original Articles

A time-varying parameter consumption model for the UK

Haiyan Song Department of Economics and Law, University of Abertay, Dundee, Dundee DD1 1HG, Scotland
Pages 339-342 | Received 25 May 1995, Published online: 02 Nov 2006
 
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Abstract

This paper uses a time varying parameter (TVP) approach to model and forecast the aggregate consumers’ expenditure on non-durables and services in the UK. The results suggest that the TVP method is particularly useful in forecasting when the structure of the consumption model is unstable.

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