Finansiella tillgångar och konsumtion- En analys av svensk data på kort och lång sikt

Abstract

Household consumption is a key determinant of the Swedish economy. Furthermore, the evidence of recent studies show the effects from the financialization, which has shifted the role of certain components of growth of the Swedish economy for the past 20 years. One effect in particular, includes the increasing role of credit-based consumption as a determinant for Swedish economic growth. With reference to the increased role of household consumption for the Swedish economy, the objective of this study is to examine its relationship to variables based on both conventional economic theory such as disposable income and financial assets. But also, variables whose relevance has increased as determinants for consumption based on more recent studies, including the price index of OMX30 and total liabilities. This study examines the named macroeconomic variable’s long-term and short-term relationship with private consumption in Sweden and the focus relies on financial assets. The method for examining the relationship with consumption is conducted through the testing for cointegration with the application of the Engle-Granger and Johansen test. Furthermore, the study finds a long-term relationship between consumption, financial assets and disposable income. Moreover, an error correction model is also estimated in an attempt to capture short-run deviations from the long-run equilibria.