Author: Khan A. MohabbatPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Permanent Income Hypothesis and the Demand for Durable Goods
Author: Khan A. MohabbatTime-series Implications of the Permanent Income Hypothesis on Durable Goods Consumption
Author: Sungwon ChoPublisher:
ISBN:
Category :
Languages : en
Pages : 90
Book Description
Mankiw's rational expectations-permanent income hypothesis (RE-PIH) model on consumer durable expenditures predicts that the change in durable expenditures should follow an MA (1) process. Empirical tests of this joint hypothesis, however, have been rejected using the postwar U.S. data. This thesis presents a time-series representation of the RE-PIH model that is capable of explaining the quarterly aggregated durable goods expenditure series. A novel feature of the analysis is that the observed infrequent purchases of durable goods by the consumers are incorporated into the model and that the time aggregation problem is explicitly addressed to investigate the aggregate dynamics of the durable expenditures. The time-series implication of the base model is that the change in durable expenditures is a function of the durable goods purchase interval. Mankiw's MA (1) model is shown to be a special case where the purchase interval is one quarter. Estimation results show that the RE-PIH model is capable of explaining the quarterly aggregate dynamics of the consumer durable goods expenditures once the infrequent microeconomic action is incorporated into the model and the time aggregation problem is explicitly taken into account.
Durable Consumption and the Life Cycle Permanent Income Hypothesis
Author: Chaiwuth TangsomchaiPublisher: ProQuest
ISBN: 9780549439868
Category :
Languages : en
Pages : 177
Book Description
Weekly Weather and Crop Bulletin
Author: The Demand for Durable Goods
Author: Arnold C. HarbergerPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 296
Book Description
A publication of the Research Group in Public Finance.
The Permanent-income Hypothesis of the Demand for Money
Author: Richard Einer PetersonPublisher:
ISBN:
Category :
Languages : en
Pages : 272
Book Description
Testing the Permanent Income Hypothesis
Author: Tony S. WirjantoPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper investigates whether there are variants of the permanent income model that are consistent with seasonally unadjusted quarterly postwar Canadian data. The analysis is based on a misspecification-test equation which nests the standard permanent income model. The results obtaineda re somewhatu nfavourablet o the permanent-incomeh ypothesis. The same results also apply to more general models in which the real interest rate is timevarying and the utility function is non-separable in consumption and the stock of durable goods.
Permanent Income, Wealth, and Consumption
Author: Thomas MayerPublisher: University of California Press
ISBN: 0520337158
Category : Business & Economics
Languages : en
Pages : 432
Book Description
This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1972.
Alternative Models of Consumer Behavior: the Permanent Income Hypothesis and the Life Cycle Hypothesis
Author: Robert Sumner HolbrookPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 290
Book Description
The Life-cycle Permanent-income Model and Consumer Durables
Author: Avner Bar-IlanPublisher:
ISBN:
Category : Consumption (Economics).
Languages : en
Pages : 30
Book Description
This paper presents an extension of the life-cycle permanent-income model of consumption to the case of a durable good whose purchase involves lumpy trans- actions costs. Where individual behavior is concerned, the implications of the model are different in some respects from those of standard consumption theory. Specifically, rather than choose an optimal path for the service flow from durables, the optimizing consumer will choose an optimal range and try to keep his service flow inside that range. The dynamics implied by this behavior is different from that of the stock adjustment model. Properties of aggregate durables consumption are derived by explicit aggregation. In particular, it is shown that expenditures on durables display very large short-run elasticity to changes in permanent income. Empirical tests of the sort suggested by Hall (1978) generally produce results that are in line with the predictions of the theory.