Testing the Cross-Section Implications of Friedman's Permanent Income Hypothesis

We use modern household data and econometric methods to conduct some of the original tests of the Permanent Income Hypothesis (PIH) suggested and used by Friedman (1957). The data and methods are superior to those available to Friedman, allowing us to refine Friedman’s tests and perform tests he could not do. The results provide overall but not universal support for PIH.

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Year of publication:	2004-01
Authors:	DeJuan, Joseph ; Seater, John
Institutions:	Department of Economics, University of Waterloo

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 04003
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005748019