Research Discussion Paper – RDP 9209 Financial Liberalisation and Consumption Behaviour

Contents

• Introduction
• The Hall Model and Modifications
• Cross-Country λ Comparisons and the Degree of Financial Liberalisation
• Estimates of λ by Decade and the Liquidity Constrants Interpretation
• Cross Country Correlation of Residuals and Pooled Results
• Time-Varying Parameter Estimates
• Conclusions
• Appendix
• References

Thanks are due to Janice Owens, OECD, for her assistance in preparing some of the supporting statistical material. The views expressed reflect the opinions of the authors and do not necessarily represent those of their respective employers.