Understanding Consumption
- 8 October 1992
- book
- Published by Oxford University Press (OUP)
Abstract
Presents a comprehensive introduction to the study of consumption and saving using theoretical models based on standard microeconomic foundations as well as reviewing the substantial empirical literature on the subject. A number of related topics such as the growth‐to‐saving hypothesis, the impact of interest rates on saving, risk sharing, aggregation, and information are also covered. One main focus of the book is the debate on the permanent income hypothesis and the excess sensitivity of consumption with respect to income. The importance of precautionary saving and liquidity constraints in explaining the observed consumption paths are also discussed in detail.Keywords
This publication has 118 references indexed in Scilit:
- Is the UK Balance of Payments Sustainable?Economic Policy, 1990
- Unit roots in real GNP: Do we know, and do we care?Carnegie-Rochester Conference Series on Public Policy, 1990
- Precautionary Saving and the Timing of TaxesJournal of Political Economy, 1989
- Testing the Life-Cycle Hypothesis with a Norwegian Household PanelJournal of Business & Economic Statistics, 1989
- Intertemporal Substitution, Risk Aversion and the Euler Equation for ConsumptionThe Economic Journal, 1989
- How Big Is the Random Walk in GNP?Journal of Political Economy, 1988
- Testing the Response of Consumption to Income Changes with (Noisy) Panel DataThe Quarterly Journal of Economics, 1987
- Intertemporal Substitution in MacroeconomicsThe Quarterly Journal of Economics, 1985
- Private Saving in Britain, Past, Present and FutureThe Manchester School, 1964
- A Post'War Expenditure FunctionThe Manchester School, 1962