Work

A Direct Test of the Permanent Income Hypothesis with an Application to the U.S. States

Year: 2004

Type: article

Abstract: This paper tests the prediction of the permanent income hypothesis (PIH) that news about future income induce a revision in consumption equal to the revision in permanent income. We use time-series data from 48 contiguous U.S. states to perform the test. The empirical results provide some support for the PIH across states.

Source: Journal of money credit and banking

DOI: 10.1353/mcb.2005.0014

Authors: Joseph P. Dejuan, John J. Seater, Tony S. Wirjanto

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2153353404

FWCI: 1.262

Cites: 32

Cited by: 22

Related to: 10