Author: Publisher:
ISBN:
Category :
Languages : en
Pages : 17
Book Description
Stochastic Implications of the Life Cycle-permanent Income Hypothesis
Author: Stochastic Implications of the Life Cycle-Permanent Income Hypothesis
Author: Robert E. HallPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Optimization of the part of consumers is shown to imply that the marginal utility of consumption evolves according to a random walk with trend. To a reasonable approximation, consumption itself should evolve in the same way. In particular, no variable apart from current consumption should be of any value in predicting future consumption. This implication is tested with time-series data for the postwar United States. It is confirmed for real disposable income, which has no predictive power for consumption, but rejected for an index of stock prices. The paper concludes that the evidence supports a modified version of the life cycle-permanent income hypothesis.
The Stochastic Implications of the Life Cycle--permanent Income Hypothesis
Author: Ward TheilmanPublisher:
ISBN:
Category : Consumption (Economice)
Languages : en
Pages : 38
Book Description
Weekly Weather and Crop Bulletin
Author: 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.
Testing the Stochastic Implications of the Permanent Income Hypothesis Using Canadian Provincial Data
Author: Joseph P. DeJuanPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper utilizes relatively unexplored Canadian provincial-level data to investigate an old but still relevant question in macroeconomics as to whether consumption responds to income innovations in a manner consistent with the stochastic implications of the permanent income hypothesis (PIH). The empirical results obtained do not appear to be in accord with the PIH. Instead, consumption's response to income innovations is found to be much weaker than that predicted by PIH; in particular, the response displays an asymmetric pattern in the sense that it is much stronger for negative than positive income innovations. We interpret this evidence of asymmetry as indicative of the presence of liquidity constraints in provincial households.
The Rational Consumer
Author: Robert Ernest HallPublisher: MIT Press
ISBN: 9780262081979
Category : Business & Economics
Languages : en
Pages : 212
Book Description
The Rational Consumer brings together eight articles that represent key points in the development of Robert Hall's ideas on consumption over the past two decades. Since the late 1960s, Robert Hall's research has had a significant impact on the macroeconomic study of consumer behavior. The Rational Consumer brings together eight articles that represent key points in the development of Hall's ideas on consumption over the past two decades. In his introduction, Hall puts this work into perspective, tying together his ideas and pointing to how consumer behavior should work in the future given what he has discovered.Working within the standard intertemporal models of consumption - the overlapping generations model and the infinite lifetime model - Hall's contributions to methodology have been especially important. Particularly noteworthy was his challenge to the prevalent model in which current consumption was seen as deriving from expected future income. Hall argued that consumption was, instead, based upon the actual present discounted value of future income.ContentsIntroduction - The Allocation of Wealth among the Generations of a Family that Lasts Forever - A Theory of Inheritance - The Dynamic Effects of Fiscal Policy in an Economy with Foresight - Consumption Taxes versus Income Taxes: Implications for Economic Growth - Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence - The Sensitivity of Consumption to Transitory Income: Estimates from Panel Data on Households (with Frederic S. Mishkin) - Intertemporal Substitution in Consumption - Survey of Research on the Random Walk of Consumption - The Role of Consumption in Economic Fluctuations
Aggregate Stochastic Implications of the Life Cycle Hypothesis
Author: Richard H. ClaridaAn Empirical Study of the Life Cycle - Permanent Income Hypothesis
Author: Lian Siang LeePublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 126
Book Description
The Permanent Income Hypothesis when the Bliss Point is Stochastic
Author: James M. NasonPublisher: Department of Economics, University of British Columbia
ISBN:
Category : Permanent income theory
Languages : en
Pages : 68
Book Description