Permanent Income, Wealth, and Consumption: A Critique of the Permanent Income Theory, the Life-Cycle Hypothesis, and Related Theories

Permanent Income, Wealth, and Consumption: A Critique of the Permanent Income Theory, the Life-Cycle Hypothesis, and Related Theories

Permanent Income, Wealth, and Consumption: A Critique of the Permanent Income Theory, the Life-Cycle Hypothesis, and Related Theories

Permanent Income, Wealth, and Consumption: A Critique of the Permanent Income Theory, the Life-Cycle Hypothesis, and Related Theories

Excerpt

This Part consists of two chapters which set the stage for what follows. The first of these chapters discusses the scope of this book as well as some necessary definitions. Chapter 2 provides a brief summary of the theories to be tested. Although some of them, such as Friedman's permanent income theory and the Modigliani-Brumberg-Ando life cycle hypothesis are well known, others, for example, the Pennsylvania School's normal income theory, or the Ball-Drake model are less widely known. Since the focus of this book is on empirical testing rather than on theoretical development, I have confined myself to a brief description of the theories.

Author Advanced search

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.