A Critique of the Neo-Fisherian Consumption Function

This paper asserts the importance for radicals of stripping neoclassical economics of its apparent empiricist bases. It exemplifies this by presenting the results of a comprehensive review of the literature of the Permanent Income and Life Cycle Hypotheses. It concludes that tests fail to show their empirical superiority over alternative theories. The reason for their popularity is their implicit ideological function as part of the support for the neoclassical paradigm.