01820cas a2200241 a 4500 AALejournalIMF010093 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451970531 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Looking for An Economically Meaningful Way to Assess Fiscal Policy. Washington, D.C. : International Monetary Fund, 1989. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the behavior of private consumption in Mexico and Chile. Understanding private consumption behavior in developing countries is receiving increasing attention at a time many of them are required to substitute national saving for external saving. For both countries dealt with in this study, changes in the real rate of interest appeared to have a sizable negative effect on private consumption. Private consumption also appeared to be (positively) influenced by real net capital inflows. An empirical approximation to permanent income also appears relevant for both countries, in particular for Mexico, where the sum of the 2-year income elasticities was very close to 1.0. Finally, government consumption did not appear as a relevant variable in either country. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1989/051 Full text available on IMF http://elibrary.imf.org/view/journals/001/1989/051/001.1989.issue-051-en.xml IMF e-Library