CONSUMPTION IN DEVELOPED AND EMERGING ECONOMIES
Abstract
In what follows various econometric technique is applied to determine the source of consumption growth with historical retrospective to equity and real estate markets as well comparative analysis of US consumer and Chinese consumer is presented. Evidence supports the argument that consumption as economic growth engine has been possible only due to ability to withdraw and spend equity from appreciating assets in the USA. Financial underdevelopment of emerging economies makes replication of this process questionable.
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