Problemi relativi alla definizione e alla stima di una funzione del consuno regionale

Abstract

A consumption function at the regional level is proposed and estimated on the basis of data of Sicily in the period 1951-85. The proposed function contains as specific variables both the regional income and the current transfers. An error correction model was used to account for short and long run effects as well as to get estimates in agreeement with the theory. The results are quite encouraging and allow us to draw some interesting conclusions, with respect to the role of current transfers in sustaining both the regional income and the aggregate consumption in the Sicilian economy.