The permanent income hypothesis: evidence from the consumer expenditure survey

Article Abstract:

The permanent income/life cycle hypothesis is tested at a microeconomic level using data from the 1986-1991 Consumer Expenditure Survey. Consumption Euler relations are estimated for this purpose, and results show that the overidentifying restrictions implied by the hypothesis generally are not rejected. In addition, there is not enough evidence of liquidity-constrained or rule-of-thumb behavior. These observations are robust with respect to changes in sample, consumption category and choice of instruments.

Consumer Behavior, Econometrics & Model Building, Econometrics, Interest rates, Microeconomics, Business models, Permanent income theory

---

An empirical analysis on the substitutability between private consumption and government purchases

Article Abstract:

The effect of government purchases of goods and services on private consumption should be taken into account in the making of fiscal policy. One way of simulating this effect is by assessing the substitutability of government purchases for private consumption using an optimal consumption model whose utility function features several nonseparabilities between government services and consumption.

Government purchasing

---

Does the choice of consumption measure matter? An application to the permanent-income hypothesis

Article Abstract:

The validity of the permanent-income hypothesis depends on the type of consumption measure being utilized. Rejection of the permanent-income hypothesis resulted when it was tested with Skinner's measure of predicted consumption and with a newly formulated measure of composite consumption. On the other hand, validation of the hypothesis resulted when tested with food consumption.

Economics, Research and Development in the Social Sciences and Humanities, Analysis, Economic research

Similar abstracts:

• Abstracts: The Czech labour market in transition: evidence from a micro study. Inidrect re-employment wage discrimination
• Abstracts: The impact of minimum wage on the wages of the low-paid: evidence from the Wage Boards and Councils
• Abstracts: The European exchange rate mechanism and the European Monetary Union. Solvency and sustainability of fiscal policies in the EU
• Abstracts: Altering the product life cycle of consumer durables: The case of minivans. Whither franchising? the case of Avis Europe PLC
• Abstracts: EMU: why and how it might happen. Exchange rates and employment instability: evidence from matched CPS data. The new EMS: narrow bands inside deep bands

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.