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.

pdf

Additional Information

ISSN
1538-4616
Print ISSN
0022-2879
Pages
pp. 1091-1103
Launched on MUSE
2005-03-22
Open Access
No
Archive Status
Archived 2007
Back To Top

This website uses cookies to ensure you get the best experience on our website. Without cookies your experience may not be seamless.