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Full-Text Articles in Econometrics
The Relationship Between Poverty And Economic Growth Revisited, Lonnie K. Stevans, David N. Sessions
The Relationship Between Poverty And Economic Growth Revisited, Lonnie K. Stevans, David N. Sessions
Lonnie K. Stevans
It has been shown in prior research that increased economic growth reduces poverty. Authors have also found that the effect of growth in GDP on poverty growth has either diminished or remained unchanged over time and the 1980s economic expansion in the U.S. had no affect on poverty. Using a formal error-correction model, we find that increases in economic growth are significantly related to reductions in the poverty rate for all families. Specifically, GDP growth was found to have a more pronounced effect on poverty during the expansionary periods of the 1960s, 1970s, 1980s, 1990s, and 2000s. Other findings include …
Aggregate Consumption Spending, The Stock Market, And Asymmetric Error Correction, Lonnie K. Stevans
Aggregate Consumption Spending, The Stock Market, And Asymmetric Error Correction, Lonnie K. Stevans
Lonnie K. Stevans
In this study, we show how changes in wealth resulting from unanticipated changes in the value of equity holdings begin a process whereby households alter consumption growth in order to close the gap between actual and target spending. Because of changing uncertainty or equity price volatility over the stock market cycle, we found the time path of this adjustment to exhibit near random walk behavior during stock market downturns. Conversely, during “boom” periods, e.g. when the value of equities held by households was greater than the threshold, the growth in consumer spending was quick to eliminate the disparity between actual …