Kwan.
Position | Conferences - Elasticity of substitution in consumption in East Asian countries - Brief Article |
Kwan investigates the extent of direct substitution between government and private consumption in nine East Asian countries. His regression uncovers a significantly positive elasticity of substitution between government and private consumption, implying that government and private consumption on average are substitutes in East Asia. A country-by-country analysis, however, reveals diversity in the substitutability estimates. The four North East countries--China, Hong Kong, Japan, and Korea--tend to share similar and small values of the substitution elasticity. For...
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