Aggregate consumption, interest rates and inflation in LDCS: An error correction model
用误差修正模型研究欠发达国家实际利率对消费储蓄决策的影响，发现低通胀国家利率对储蓄有显著正向作用，而高通胀国家效果不明显。
This article explores the relationship between the real interest rate and the consumption‐saving decisions in LDCs following the Error Correction Methodology. The model also includes an income term, the inflation rate and a term for inflation uncertainty. The main conclusion drawn from this exercise is that, for low‐inflation countries there is a positive and stronger interest rate effect on saving while this effect is less clear (and not significant) for most high‐inflation countries. Also, the results show that for at least half of the countries in the sample, an EC model with a unit elasticity restriction seems to be an adequate representation of the data.