Cointegration, error correction and long-run consumption-income relation in Lesotho

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Periodical article

Title:	Cointegration, error correction and long-run consumption-income relation in Lesotho
Author:	Akano, Olasupo
Year:	1998
Periodical:	The Nigerian Journal of Economic and Social Studies
Volume:	40
Issue:	3
Pages:	371-384
Language:	English
Geographic term:	Lesotho
Subjects:	national accounts consumption
Abstract:	Using the autoregressive distributed lag framework with an error correction mechanism, the author analysed the determinants of long-run consumption behaviour in Lesotho over the 1960-1994 period, and measured the relative effects of current and lagged values of per capita income and inflation on consumption behaviour. He found, amongst others, that per capita income was a strong determinant of long-run consumption behaviour in Lesotho, that inflation was not a significant factor in long-run consumption ajdustment but that its short-run impact was significant, that the income elasticity of consumption expenditure over the study period was approximately unity, and that consumption behaviour over the study period was not significantly influenced by past income and previous consumption habits exceeding a one-year period. Bibliogr., notes, ref., sum.