Author: Charlotte OstergaardPublisher:
ISBN:
Category : Income
Languages : en
Pages : 48
Book Description
Permanent Income, Consumption and Aggregate Constraints
Author: Charlotte OstergaardPublisher:
ISBN:
Category : Income
Languages : en
Pages : 48
Book Description
Essays on Liquidity Constraints, Aggregation, and the Permanent-income Hypothesis
Author: Xiaonian XuConsumption and Aggregate Constraints
Author: Charlotte OstergaardPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 40
Book Description
Consumption and Aggregate Constraints
Author: Charlotte OstergaardPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
State-level consumption exhibits excess sensitivity to lagged income to the same extent as U.S. aggregate data, but state-specific (idiosyncratic) consumption exhibits substantially less sensitivity to lagged state-specific income - a result that also holds for Canadian provinces. We propose the following interpretation: borrowing and lending in response to changes in consumer demand are easier for individual U.S. states than for the United States as a whole, and therefore, the measured deviation from the benchmark permanent income hypothesis model is smaller. However, lagged state-specific variables help predict state-specific consumption, suggesting that the PIH model still requires qualification.
Borrowing Restrictions and Wealth Constraints
Author: Carl E. WalshPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 33
Book Description
Recent empirical studies have found that consumption is more sensitive to current income than the life-cycle, permanent income hypothesis would predict.The present paper studies a model in which the fraction of consumers exhibiting excess sensitivity is endogenously determined. The presence of income uncertainty and restrictions on borrowing are shown to generate adistribution of consumption across individuals which is consistent with the recent empirical evidence. The aggregate marginal propensity to consume out of transitory income is directly related to the fraction of constrained consumers and exhibits positive serial correlation in the face of serially uncorrelated income shocks
Asymptotic Theory for Econometricians
Author: Halbert WhitePublisher: Academic Press
ISBN: 1483294420
Category : Business & Economics
Languages : en
Pages : 241
Book Description
This book is intended to provide a somewhat more comprehensive and unified treatment of large sample theory than has been available previously and to relate the fundamental tools of asymptotic theory directly to many of the estimators of interest to econometricians. In addition, because economic data are generated in a variety of different contexts (time series, cross sections, time series--cross sections), we pay particular attention to the similarities and differences in the techniques appropriate to each of these contexts.
Weekly Weather and Crop Bulletin
Author: The Microeconomics and Macroeconomics of the Permanent Income Hypothesis
Author: Angus DeatonPublisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 56
Book Description
The Economics of Consumption
Author: Tullio JappelliPublisher: Oxford University Press
ISBN: 0199383170
Category : Business & Economics
Languages : en
Pages : 313
Book Description
Consumption decisions are crucial determinants of business cycles and growth. Knowledge of how consumers respond to the economic environment and how they react to the risks that they encounter during the life-cycle is therefore important for evaluating stabilization policies and the effectiveness of fiscal packages implemented in response to economic downturns or financial crises. In The Economics of Consumption, Tullio Jappelli and Luigi Pistaferri provide a comprehensive examination of the most important developments in the field of consumption decisions and evaluate economic models against empirical evidence. The first part of the book provides the basic ingredients of economic models of consumption decisions. The central part reviews the empirical literature on the effect of income and wealth changes on consumption and on the relevance of precautionary saving and credit market imperfections. The last chapters extend the basic framework to such important areas as bequests, leisure, lifetime uncertainty, and financial sophistication. Jappelli and Pistaferri shed light on important issues, including how consumption responds to changes in economic resources, how economic circumstances and consumers' characteristics influence behavior, and whether consumption inequality depends on income shocks and their persistence.
Aggregate Consumption Behaviour and Liquidity Constraints
Author: Tony S. WirjantoPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper considers a general permanent-income model in which a fraction of consumers in the economy is liquidity constrained. Consumption growth rate for these individuals is related to the growth rate of their income and the level of real interest rates. The interest-rate coefficient is predicted to be smaller in the presence of liquidity constraints. Empirically, liquidity constraints are found to be important, and the estimated intertemporal elasticity of substitution parameter is much larger than the one obtained by estimating the standard representative agent model. Lastly, there is some evidence of structural changes over the sample period, which are associated with the 1982 recession.