[DOWNLOAD] "Empirical Tests of the Rational Expectations--Permanent Income Hypothesis: Evidence from Pakistan * (FISCAL AND MONETARY Issues) (Report)" by Pakistan Development Review " eBook PDF Kindle ePub Free

📘 Read Now     📥 Download

eBook details

• Title: Empirical Tests of the Rational Expectations--Permanent Income Hypothesis: Evidence from Pakistan * (FISCAL AND MONETARY Issues) (Report)
• Author : Pakistan Development Review
• Release Date : January 22, 1994
• Genre: Economics,Books,Business & Personal Finance,
• Pages : * pages
• Size : 306 KB

Description

I. INTRODUCTION The permanent income hypothesis postulates that at a given point in time, an individual's consumption is determined by his lifetime resources and not by his income. Thus, the hypothesis suggests that an individual's consumption will respond only to changes in permanent income. The insertion of the rational expectations theory into Friedman's permanent income hypothesis by Hall (1978),--called the Rational Expectations/Permanent Income Hypothesis (thereafter RE/PIH)-changed this view, and suggested that current aggregate consumption is determined only by its own lag. Any information that may help in determining current consumption is already included in last period's consumption. Hence consumption follows a random walk.

Ebook Download "Empirical Tests of the Rational Expectations--Permanent Income Hypothesis: Evidence from Pakistan * (FISCAL AND MONETARY Issues) (Report)" PDF ePub Kindle