A Simple Test of Friedman's Permanent Income Hypothesis

Joseph P. DeJuan · John J. Seater

24 citations0/0 files storedEconomica

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Monetary Policy and Economic Impact Financial Literacy, Pension, Retirement Analysis Economic Theory and Policy

Abstract

Friedman's Permanent Income Hypothesis (PIH) predicts that the income elasticity of consumption should be higher for households for which a large fraction of the variation of their income is permanent than for households facing more transitory variations in income. We test this prediction using modern household data from the US Consumer Expenditure Survey. The results offer some support for the PIH.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 24 citations exist upstream.

References

1957Theory of the Consumption Function 1992Understanding Consumption 1958A Theory of the Consumption Function 1997The nature of precautionary wealth 1999The Response of Household Consumption to Income Tax Refunds 1995Is Consumption Growth Consistent with Intertemporal Optimization? Evidence from the Consumer Expenditure Survey 1999The Reaction of Household Consumption to Predictable Changes in Social Security Taxes 1995How Important Is Precautionary Saving?

Cited by

2015Estimating Consumption Function under Permanent Income Hypothesis: A Comparison between Nigeria and South Africa 2009Creating a savings culture for the Black middle class in South Africa - policy guidelines and lessons from China and India 2011How the Housing and Financial Wealth Effects Have Changed over Time 2021Challenges of Milton Friedman’s Contributions: A Perspective of Behavioral Economics

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.