Alani, Jimmy - In: International Econometric Review (IER) 14 (2022) 1, pp. 21-45
In this paper a new consumption function is derived based on savings motive hypothesis (SMH). The major theory behind the SMH is that households save part of their income in period 1 and transfer it to period 2. Implying that consumption in period 1 is the addition of autonomous consumption and...
