CAUSAL RELATIONSHIP BETWEEN PAPER PER CAPITA CONSUMPTION AND PER CAPITA INCOME IN BRAZIL

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Naisy Silva Soares
Laércio Antônio Gonçalves Jacovine
Márcio Lopes da Silva
Marcelo José Braga

Abstract

This work analyzed the causality between paper per capita consumption and per capita income in Brazil, using Granger causality test, co-integration, vector error correction model (VECM), Variance decomposition and Impulse response function. The annual data covers the 1975-2006 period. The results indicated that, in the long run, there  is causal relation between per capita income and paper per capita consumption. It was also observed that per capita income has high explanatory power on the paper per capita consumption and low sensibility of the paper per capita consumption in relation to the per capita income.

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