Author: Marianne Baxter
Publisher:
ISBN:
Category :
Languages : es
Pages : 57
Book Description
Household production and the excess sensitivity of consumption to current income
Household Production and the Excess Sensitivity of Consumption to Current Income /cMarianne Baxter, Urban J. Jermann
Household Production and Consumption
Author: Nestor E. Terleckyj
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 696
Book Description
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 696
Book Description
Excess Sensitivity of Consumption to Current Income
Author: Marjorie Flavin
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
Book Description
Almost all of the recent empirical tests of the rational expectations - permanent income hypothesis (RE-PIH) have rejected the hypothesis. The null hypothesis in this empirical literature typically consists of the joint hypothesis that 1) agents' expectations are formed rationally, 2) desired consumption is determined by permanent income, and 3) capital markets arequot;perfectquot; in the sense that agents can lend or borrow against expected future income at the same interest rate. This paper attempts to determine whether the excess sensitivity of consumption to current income can be attributed to a failure of the third component of the joint hypothesis -- the assumption of quot;perfectquot; capital markets -- as opposed to a failure of one or both of the first two assumptions. The paper examines, as a specific alternative to the PIH, a simple quot;Keynesianquot; consumption function in which the behavioral MPC out of transitory income is different from zero. Interpreting the unemployment rate as a proxy for the proportion of the population subject to liquidity constraints, the paper uses a generalized version of the econometric model in my earlier paper(1981) to conduct a specification test of the quot;Keynesianquot; consumption function. The finding that the estimate of the MPC out of transitory income is dramatically affected, in both magnitude and statistical significance, by the inclusion of the proxy for liquidity constraints suggests that liquidity constraints are an important part of the explanation of the observed excess sensitivity of consumption to current income.
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
Book Description
Almost all of the recent empirical tests of the rational expectations - permanent income hypothesis (RE-PIH) have rejected the hypothesis. The null hypothesis in this empirical literature typically consists of the joint hypothesis that 1) agents' expectations are formed rationally, 2) desired consumption is determined by permanent income, and 3) capital markets arequot;perfectquot; in the sense that agents can lend or borrow against expected future income at the same interest rate. This paper attempts to determine whether the excess sensitivity of consumption to current income can be attributed to a failure of the third component of the joint hypothesis -- the assumption of quot;perfectquot; capital markets -- as opposed to a failure of one or both of the first two assumptions. The paper examines, as a specific alternative to the PIH, a simple quot;Keynesianquot; consumption function in which the behavioral MPC out of transitory income is different from zero. Interpreting the unemployment rate as a proxy for the proportion of the population subject to liquidity constraints, the paper uses a generalized version of the econometric model in my earlier paper(1981) to conduct a specification test of the quot;Keynesianquot; consumption function. The finding that the estimate of the MPC out of transitory income is dramatically affected, in both magnitude and statistical significance, by the inclusion of the proxy for liquidity constraints suggests that liquidity constraints are an important part of the explanation of the observed excess sensitivity of consumption to current income.
Consumption Growth and Excess Sensitivity to Income
Author: Orazio P. Attanasio
Publisher:
ISBN:
Category : Consumer behaviour
Languages : en
Pages : 41
Book Description
Publisher:
ISBN:
Category : Consumer behaviour
Languages : en
Pages : 41
Book Description
Weekly Weather and Crop Bulletin
Essays on Consumption, Excess Sensitivity, and Income Uncertainty
Household Production and Consumption
Author: Nestor E. Terleckyj
Publisher:
ISBN: 9780598172983
Category :
Languages : en
Pages : 683
Book Description
Publisher:
ISBN: 9780598172983
Category :
Languages : en
Pages : 683
Book Description
Consumption Growth and Excess Sensitivity to Income: Evidence from U.S. Micro Data
National Saving and Economic Performance
Author: B. Douglas Bernheim
Publisher: University of Chicago Press
ISBN: 9780226044040
Category : Business & Economics
Languages : en
Pages : 408
Book Description
"... Papers presented at a conference held at the Stouffer Wailea Hotel, Maui, Hawaii, January 6-7, 1989. ... part of the Research on Taxation program of the National Bureau of Economic Research." -- p. ix.
Publisher: University of Chicago Press
ISBN: 9780226044040
Category : Business & Economics
Languages : en
Pages : 408
Book Description
"... Papers presented at a conference held at the Stouffer Wailea Hotel, Maui, Hawaii, January 6-7, 1989. ... part of the Research on Taxation program of the National Bureau of Economic Research." -- p. ix.