Kuwaiti consumption in the presence of dramatic economic events: 1973-2003
The Kuwaiti consumption functon is examined for the 1973-2003 time period. The dramatic events included: the Arab oil embargo of 1973, Kuwait's nationalization of oil facilities in 1976, the oil price shock in 1978, the Iranian revolution in 1979, the Iran/Iraq war, Kuwait's unofficial sto...
| Main Authors: | , |
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| Format: | Journal Article |
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Berkeley Electronic Press
2009
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| Online Access: | http://hdl.handle.net/20.500.11937/5134 |
| _version_ | 1848744711588675584 |
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| author | Packey, Daniel Nasair, S. |
| author_facet | Packey, Daniel Nasair, S. |
| author_sort | Packey, Daniel |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The Kuwaiti consumption functon is examined for the 1973-2003 time period. The dramatic events included: the Arab oil embargo of 1973, Kuwait's nationalization of oil facilities in 1976, the oil price shock in 1978, the Iranian revolution in 1979, the Iran/Iraq war, Kuwait's unofficial stock market AlManakh crash, increases in crude oil supply by non-OPEC producers by ten million barrels per day, the collapse of world crude oil prices in 1986, and the 1990 Iraq invasion. This paper examines three decades in which Kuwait experiences a variety of uncommonly dramatic economic and sociological events. the question we are addressing econometrically is: "Is consistency in Kuwaiti consumption maintained even in the presence of extreme economic conditions?"We found that Kuwaiti consumption is consistent with the Permanent Income Hypothesis. That is the marginal propensity to consume ( MPC) approachs the average propensity to consume (APC) and the intercept is not significanlty different from zero. Moreover, this result of a relatively small MPC of 0.30 is consistnent with the contentions of Keynes and Kurihara that wealthy high income economies have relatively small values for MPC and APC. |
| first_indexed | 2025-11-14T06:05:48Z |
| format | Journal Article |
| id | curtin-20.500.11937-5134 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:05:48Z |
| publishDate | 2009 |
| publisher | Berkeley Electronic Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-51342017-09-13T16:01:58Z Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 Packey, Daniel Nasair, S. The Kuwaiti consumption functon is examined for the 1973-2003 time period. The dramatic events included: the Arab oil embargo of 1973, Kuwait's nationalization of oil facilities in 1976, the oil price shock in 1978, the Iranian revolution in 1979, the Iran/Iraq war, Kuwait's unofficial stock market AlManakh crash, increases in crude oil supply by non-OPEC producers by ten million barrels per day, the collapse of world crude oil prices in 1986, and the 1990 Iraq invasion. This paper examines three decades in which Kuwait experiences a variety of uncommonly dramatic economic and sociological events. the question we are addressing econometrically is: "Is consistency in Kuwaiti consumption maintained even in the presence of extreme economic conditions?"We found that Kuwaiti consumption is consistent with the Permanent Income Hypothesis. That is the marginal propensity to consume ( MPC) approachs the average propensity to consume (APC) and the intercept is not significanlty different from zero. Moreover, this result of a relatively small MPC of 0.30 is consistnent with the contentions of Keynes and Kurihara that wealthy high income economies have relatively small values for MPC and APC. 2009 Journal Article http://hdl.handle.net/20.500.11937/5134 10.2202/1475-3693.1103 Berkeley Electronic Press fulltext |
| spellingShingle | Packey, Daniel Nasair, S. Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title | Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title_full | Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title_fullStr | Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title_full_unstemmed | Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title_short | Kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| title_sort | kuwaiti consumption in the presence of dramatic economic events: 1973-2003 |
| url | http://hdl.handle.net/20.500.11937/5134 |