Modeling Singapore’s aggregate consumption.

In this paper; we examine the impact of income changes on short run consumption and analyze the impact of housing wealth effect on the long run level of consumption. Due to data constraints; we constructed several variables such as disposable income and proxies for public and private housing wealth. We find that long run consumption in Singapore is affected by disposable income and consumption in the previous period; whereas the short run consumption is affected by disposable income as well as housing wealth.Bachelor of Art