Precautionary Saving: An Explanation for Excess Sensitivity of Consumption

The permanent income hypothesis under certainty equivalence yields a martingale consumption process. Empirically, this hypothesis is rejected because consumption is excessively sensitive to anticipated income. One approach to account for excess sensitivity is to relax certainty equivalence by using...

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Bibliographic details
Volume: 12
Main Author: Normandin, Michel
Format: Journal Article
Language: English
Place of publication: Washington, D.C Taylor & Francis Group 01.04.1994
American Statistical Association
Taylor & Francis Ltd
published in: Journal of business & economic statistics Vol. 12; no. 2; pp. 205 - 219
Data of publication: 4/1/1994
ISSN: 0735-0015
1537-2707
EISSN: 1537-2707
Discipline: Economics
Statistics
Mathematics
Subjects:
Online Access: Fulltext
Database: CrossRef
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