Financial innovation and Consumption in the United Kingdom

October 1, 1990

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The last decade has seen widespread deregulation of domestic financial markets in the United Kingdom. This paper uses regional household data to investigate the connection between consumption and financial innovation. It is concluded that deregulation has led to a significant increase in the forward looking nature of consumption.

Subject: Asset and liability management, Consumption, Disposable income, Financial services, Income, Liquidity, National accounts, Real interest rates

Keywords: coefficient estimate, Consumption, consumption behavior, cross-equation restriction, Disposable income, financial deregulation, Income, Liquidity, liquidity constraint, liquidity-constraint coefficient, Real interest rates, WP

Pages:
26
Volume:
1990
DOI:
---
Issue:
095
Series:
Working Paper No. 1990/095
Stock No:
WPIEA0951990
ISBN:
9781451950274
ISSN:
1018-5941

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