Integrated autoregressive moving average processes in consumption functions: a critique on Zellner's et. al. paper

Abstract

The purpose of this paper is to criticize some hypotheses which have been used in the well-known article by A. Zellner, D.S. Huang and L. C. Chau «Further Analysis of the Short-run Consumption Function with Emphasis on the Role of Liquid Assets», and to apply an integrated autoregressive moving average process in these consumption functions using the same data.