Investigating the stability of private comsumption in Namibia

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dc.contributor.advisoren_US
dc.contributor.authorKamati Reinholden_US
dc.date.accessioned2014-02-07T14:08:07Z
dc.date.available2014-02-07T14:08:07Z
dc.date.issued2009en_US
dc.descriptiona theses submitted in partial fulfilment of the requirements for the Degree of Master of Science in Economicsen_US
dc.description.abstracten_US
dc.description.abstractPrivate consumption is the component of aggregate demand which has been regarded to be stable relative to the other components. However, the current study shows that this has not been the case for Namibia during the period 1980 to 2006. Namibia.s political independence in 1990 did not only bring changes of government, but also structural changes in various parameters in the Namibian economy. Therefore, the main objective of this study is to investigate the stability of private consumption in Namibia over the period 1980 to 2006. The study applies the Augmented Dickey-Fuller test to test for stationarity of variables in the model and to determine the long run and short run models, using the Engle-Granger process of cointegration. The results show that there is cointegration between private consumption and its main determinants, namely disposable income, and average lending rate. The result from Quandt Likelihood Ratio test (QLR) and Chow test identifies at least one structural break in the private consumption model at point 1990. In addition, as the sample size increases the parameters in the private consumption model differs significantly, implying a significant difference between the marginal propensity to consume before and after independence, respectively. Furthermore, private consumption is mainly determined by current disposable income. The study reveals that households in Namibia are sensitive to changes in lending rates, while inflation and drought are insignificant in the long run. The insignificance of inflation in this study remains an empirical puzzle, which can be uncovered only by further researchen_US
dc.description.degreeWindhoeken_US
dc.description.degreeNamibiaen_US
dc.description.degreeUniversity of Namibiaen_US
dc.description.degreeMaster of Science in Economicsen_US
dc.description.statusen_US
dc.format.extentx, 69 pen_US
dc.identifier.isisF004-199299999999999en_US
dc.identifier.urihttp://hdl.handle.net/11070/437
dc.language.isoengen_US
dc.masterFileNumber3545en_US
dc.source.urien_US
dc.source.urihttp://wwwisis.unam.na/theses/kamati2009.pdfen_US
dc.subjectConsumption Namibiaen_US
dc.subjectNamibia economic conditionsen_US
dc.subjectSaving and investmenten_US
dc.titleInvestigating the stability of private comsumption in Namibiaen_US
dc.typeThesisen_US
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