Author: Larry Sanford WestPublisher:
ISBN:
Category :
Languages : en
Pages : 56
Book Description
A Test of the Permanent Income Hypothesis
Author: Larry Sanford WestWeekly Weather and Crop Bulletin
Author: A Direct Test of the Permanent Income Hypothesis with an Application to the US States
Author: Joseph DeJuanA Direct Test of the Permanent Income Hypothesis with an Application to the U.S. States
Author: Joseph P. DeJuanPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper tests the prediction of the Permanent Income Hypothesis (PIH) that news about future income induce a revision in consumption equal to the revision in permanent income. We use time-series data from 48 contiguous US states to perform the test. The empirical results provide some support for the PIH across states.
A Test of the Permanent Income Hypothesis in the United Kingdom
Author: Cliff AttfieldA Note on Campbell's Test of the Permanent Income Hypothesis
Author: Clifford L. F. AttfieldPublisher:
ISBN:
Category : Economics
Languages : en
Pages :
Book Description
A Time-series Test of the Permanent-income Hypothesis Versus Habit Persistence Theories
Author: Robert JamesPublisher:
ISBN:
Category : Consumers
Languages : en
Pages : 12
Book Description
A Reappraisal of Recent Tests of the Permanent Income Hypothesis
Author: Charles R. NelsonPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Hall (1978) showed that the permanent income hypothesis implies that consumption (1) follows a random walk, and (2) cannot be predicted by past income. Reexamination of Hall's data results in rejection of the random walk hypothesis in favor of the alternative hypothesis of positively autocorrelated changes. Evidently this is due to Hall's choice of a quadratic utility function. A logrithmic utility function implies a random walk in the log of consumption which is supported by the data. Hall reported that past income had a negative but insignificant relation to consumption. Changes in the log of income, however, do have a positive predictive relation to changes in the log of consumption. The adjustment of consumption to income seems to be spread over two quarters. Flavin's (1981) test of the theory is formally equivalent to Hall's except for assuming stationarity around a time trend. Mankiw and Shapiro (1984) have pointed out that the effect of detrending may be to tend to rejection of the theory when it is in fact correct. For Hall's data the effect of detrending is to reverse the sign of the coefficient on past income. Its magnitude is what the Mankiw-Shapiro analysis predicts under the permanent income hypothesis
Trends, Random Walks, and Tests of the Permanent Income Hypothesis
Author: N. Gregory MankiwPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 15
Book Description
Author: Joseph P. DeJuan