Rudd, Jeremy B.; Palumbo, Michael G.; Whelan, Karl - 2003
consumption expenditures. As a result, tests of standard theories of consumption (such as the Permanent Income Hypothesis, or PIH … goods and services to measures of real income and wealth, where the latter are deflated by a price index for total … consumption expenditures. We demonstrate that this procedure is only valid under the assumption that real consumption of …
