Spurious correlations in quantile-based consumption spillover tests
| Author(s) | Wang, Han | |
| Date Accessioned | 2021-12-15T17:48:03Z | |
| Date Available | 2021-12-15T17:48:03Z | |
| Publication Date | 2021 | |
| SWORD Update | 2021-08-09T22:12:41Z | |
| Abstract | Consumption spillovers are difficult to estimate. Many tests in the literature argue that spillovers cause positive correlations between individual consumption levels and aggregate income quantiles. This paper develops simulation-based procedures for evaluating reduced-form tests for consumption spillovers. I find that the correlation found in prior tests may be spurious, arising from the mechanical relationship between a household’s income in a given period and a quantile of the income distribution in that period. This paper also explores the mechanical correlation’s determinants and proposes strategies for estimating unbiased consumption spillover effects. | en_US |
| Advisor | Gorbachev, Olga | |
| Degree | Ph.D. | |
| Department | University of Delaware, Department of Economics | |
| DOI | https://doi.org/10.58088/11ds-5k81 | |
| Unique Identifier | 1288580470 | |
| URL | https://udspace.udel.edu/handle/19716/29549 | |
| Language | en | |
| Publisher | University of Delaware | en_US |
| URI | https://login.udel.idm.oclc.org/login?url=https://www.proquest.com/dissertations-theses/spurious-correlations-quantile-based-consumption/docview/2572616183/se-2 | |
| Keywords | Consumption spillover | en_US |
| Keywords | Income inequality | en_US |
| Keywords | Aggregate income quantiles | en_US |
| Title | Spurious correlations in quantile-based consumption spillover tests | en_US |
| Type | Thesis | en_US |