Bayesian estimation of the consumption function in the Eurozone.

Abstract

The Eurozone, at the moment of writing this paper, is integrated by 17 countries of the European Union. Despite the fact that this monetary unionestablishes norms of common action, however these 17 states are rather different in many aspects: language, culture, geographical situation, territory and idiosyncrasy. In this context, this paper considers the Keynesian consumption function to discover the similarities and the dissimilarities of this function inthis group of countries.