Testing the Permanent Income Hypothesis: The Evidence from Canadian Data.

The paper investigates whether there are variants of the permanent income model which are consistent with quarterly, seasonally unadjusted post-war Canadian data. The model estimates about 20 percent of consumers follow the rule of thumb of consuming their current income. This suggests a large proportion of the population behaves in the way predicted by the permanent income hypothesis. This result is robust to a variety of data issues.

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Year of publication:	1989
Authors:	Wirjanto, Tony S.
Institutions:	Economics Department, Queen's University
Subject:	economic models \| income \| interest rate

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	24 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005688412