Abstract

We estimate a micro-founded life-cycle consumption model for Saudi Arabia over the period 1970–2017 using error correction model procedures. Dynamic adjustments are significant, and both income and wealth are found to have significant effects, with a long-run marginal propensity to consume out of the income of 0.95 and out of the wealth of 0.06.

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Goblan Al Gahtani
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Bigerna, Simona
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Bollino, Carlo Andrea
Oil & Gas
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Pierru, Axel
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