Author: Fumio Hayashi
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 74
Book Description
The permanent income hypothesis is tested on a four-quarter panel of about two thousand Japanese households for ten commodity groups. Consumption is a distributed lag function of expenditures, and the utility function is additively separable in time. Durability is defined as the persistence of the distributed lag. The permanent income hypothesis implies that, for each commodity group, expected change in expenditures is correlated neither with past expenditure changes on other commodities nor with expected change indisposable income, if its own lags are controlled for. The main results are the following: (1) durability is substantial even for food and services, (2)the permanent income hypothesis applies to almost all (probably more than ninety percent) of the population, and (3) the habit persistence hypothesis is rejected in favor of the permanent income hypothesis.
The Permanent Income Hypothesis and Consumption Durability
Author: Fumio Hayashi
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 74
Book Description
The permanent income hypothesis is tested on a four-quarter panel of about two thousand Japanese households for ten commodity groups. Consumption is a distributed lag function of expenditures, and the utility function is additively separable in time. Durability is defined as the persistence of the distributed lag. The permanent income hypothesis implies that, for each commodity group, expected change in expenditures is correlated neither with past expenditure changes on other commodities nor with expected change indisposable income, if its own lags are controlled for. The main results are the following: (1) durability is substantial even for food and services, (2)the permanent income hypothesis applies to almost all (probably more than ninety percent) of the population, and (3) the habit persistence hypothesis is rejected in favor of the permanent income hypothesis.
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 74
Book Description
The permanent income hypothesis is tested on a four-quarter panel of about two thousand Japanese households for ten commodity groups. Consumption is a distributed lag function of expenditures, and the utility function is additively separable in time. Durability is defined as the persistence of the distributed lag. The permanent income hypothesis implies that, for each commodity group, expected change in expenditures is correlated neither with past expenditure changes on other commodities nor with expected change indisposable income, if its own lags are controlled for. The main results are the following: (1) durability is substantial even for food and services, (2)the permanent income hypothesis applies to almost all (probably more than ninety percent) of the population, and (3) the habit persistence hypothesis is rejected in favor of the permanent income hypothesis.
Weekly Weather and Crop Bulletin
Durable Consumption and the Life Cycle Permanent Income Hypothesis
Author: Chaiwuth Tangsomchai
Publisher: ProQuest
ISBN: 9780549439868
Category :
Languages : en
Pages : 177
Book Description
Publisher: ProQuest
ISBN: 9780549439868
Category :
Languages : en
Pages : 177
Book Description
Permanent Income, Wealth, and Consumption
Author: Thomas Mayer
Publisher: Univ of California Press
ISBN: 0520337166
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.
Publisher: Univ of California Press
ISBN: 0520337166
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.
Time-series Implications of the Permanent Income Hypothesis on Durable Goods Consumption
Author: Sungwon Cho
Publisher:
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.
Publisher:
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.
Alternative Models of Consumer Behavior: the Permanent Income Hypothesis and the Life Cycle Hypothesis
Author: Robert Sumner Holbrook
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 290
Book Description
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 290
Book Description
Expectations in the Consumption Function
Author: Yongsan Li
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 312
Book Description
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 312
Book Description
The Permanent-income Hypothesis of the Demand for Money
Author: Richard Einer Peterson
Publisher:
ISBN:
Category :
Languages : en
Pages : 272
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 272
Book Description
The Microeconomics and Macroeconomics of the Permanent Income Hypothesis
Author: Angus Deaton
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 56
Book Description
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 56
Book Description
A Theory of the Consumption Function
Author: Milton Friedman
Publisher: Courier Dover Publications
ISBN: 0486841812
Category : Business & Economics
Languages : en
Pages : 259
Book Description
This thought-provoking and influential book by a distinguished economist examines whether consumption behavior can be defined in a way that's supported by empirical evidence and useful for research and planning.
Publisher: Courier Dover Publications
ISBN: 0486841812
Category : Business & Economics
Languages : en
Pages : 259
Book Description
This thought-provoking and influential book by a distinguished economist examines whether consumption behavior can be defined in a way that's supported by empirical evidence and useful for research and planning.