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Some experiments regarding the construction of a consumption function in Belgium – In this short note we summarize the results of some experiments which we tried out in order to determine a consumption function for Belgium. The variables were first transformed into percentage changes: this allowed us to eliminate multicollinearity. The results showed that fluctuations in consumption were primarily determined by fluctuations in non-wage income, rather than by wage income. This was interpreted as a corollary of the Friedman theory of the consumption function, as non-wage income contains more transitory components than wage income, which has a more permanent character. The effect of the wage income is incorporated in a constant trend term of considerable size.
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How to Cite: Van Ryckeghem, W. (1962) “Enkele experimenten in verband met het bepalen van een consumptiefunctie voor België”, Tijdschrift voor Sociale Wetenschappen. 7(2). doi: https://doi.org/10.21825/tvsw.95650