Search Results for a-theory-of-the-consumption-function

2015 Reprint of 1957Edition. Full Facsimile of the original edition. Not reproduced with Optical Recognition Software. In this book Friedman developed the permanent income hypothesis (PIH).

Author: Milton Friedman

Publisher:

ISBN: 1614278121

Category: Business & Economics

Page: 258

View: 855

DOWNLOAD & READ
2015 Reprint of 1957Edition. Full Facsimile of the original edition. Not reproduced with Optical Recognition Software. In this book Friedman developed the permanent income hypothesis (PIH). As classical Keynesian consumption theory was unable to explain the constancy of savings rate in the face of rising real incomes in the United States, a number of new theories of consumer behavior emerged. In his book, Friedman posits a theory that encompasses many of the competing hypotheses at the time as special cases and presents statistical evidence in support of his theory. "Friedman described Keynes's theory of a declining propensity to consume as 'very imaginative and thoughtful.' But in "A Theory of the Consumption Function" (1957), he demonstrated that while the hypothesis seemed to make psychological sense, it was empirically false. In relating income to propensity to consume, Keynes had erred in not distinguishing between 'transitory' and 'permanent' income. In fact, consumption does not decline as incomes generally rise. Economists across the political spectrum agreed with Friedman's refutation of Keynes...."--James A. Nuechterlein, Commentary
2015-04-28 By Milton Friedman

In this volume a distinguished American economist presents a new theory of the consumption function, tests it against extensive statistical J material and suggests some of its significant implications.

Author: Milton Friedman

Publisher: Princeton University Press

ISBN: 9780691138862

Category: Business & Economics

Page: 259

View: 792

DOWNLOAD & READ
What is the exact nature of the consumption function? Can this term be defined so that it will be consistent with empirical evidence and a valid instrument in the hands of future economic researchers and policy makers? In this volume a distinguished American economist presents a new theory of the consumption function, tests it against extensive statistical J material and suggests some of its significant implications. Central to the new theory is its sharp distinction between two concepts of income, measured income, or that which is recorded for a particular period, and permanent income, a longer-period concept in terms of which consumers decide how much to spend and how much to save. Milton Friedman suggests that the total amount spent on consumption is on the average the same fraction of permanent income, regardless of the size of permanent income. The magnitude of the fraction depends on variables such as interest rate, degree of uncertainty relating to occupation, ratio of wealth to income, family size, and so on. The hypothesis is shown to be consistent with budget studies and time series data, and some of its far-reaching implications are explored in the final chapter.
2008-08-17 By Milton Friedman

Author:

Publisher:

ISBN: MINN:30000010418907

Category: Crops and climate

Page: 32

View: 831

DOWNLOAD & READ
1994 By

Author: Milton Friedman

Publisher:

ISBN: OCLC:635712510

Category: Consumption (Economics)

Page: 243

View: 859

DOWNLOAD & READ
1964 By Milton Friedman

This paper argues that the modern stochastic consumption model, in which impatient consumers face uninsurable labor income risk, matches Milton Friedman's (1957) original description of the Permanent Income Hypothesis much better than the ...

Author: Chris Carroll

Publisher:

ISBN: OCLC:248376140

Category: Consumption (Economics)

Page: 33

View: 540

DOWNLOAD & READ
This paper argues that the modern stochastic consumption model, in which impatient consumers face uninsurable labor income risk, matches Milton Friedman's (1957) original description of the Permanent Income Hypothesis much better than the perfect foresight or certainty equivalent models did. The model can explain the high marginal propensity to consume, the high discount rate on future income, and the important role for precautionary behavior that were all part of Friedman's original framework. The paper also explains the relationship of these questions to the Euler equation literature, and argues that the effects of precautionary saving and liquidity constraints are often virtually indistinguishable
2001 By Chris Carroll

Author: Milton Friedman

Publisher:

ISBN: OCLC:494318793

Category:

Page: 243

View: 717

DOWNLOAD & READ
1857 By Milton Friedman

Author:

Publisher:

ISBN: OCLC:889340570

Category:

Page: 0

View: 238

DOWNLOAD & READ
1957 By

Author: Christopher D. Carroll

Publisher:

ISBN: OCLC:849221821

Category:

Page: 33

View: 521

DOWNLOAD & READ

ratio of permanent consumption to permanent income , and that an increase in w tends to raise k . In its short - run aspect , as an interpretation of cyclical fluctuations , the central role in the income - expenditure theory is played ...

Author: Milton Friedman

Publisher: Courier Dover Publications

ISBN: 9780486848433

Category: Business & Economics

Page: 256

View: 458

DOWNLOAD & READ
This thought-provoking and influential book by a distinguished economist examines whether consumption behavior can be defined in a way that's supported by empirical evidence and useful for research and planning.
2020-10-14 By Milton Friedman

ratio of permanent consumption to permanent income, and that an increase in w tends to raise k. In its short-run aspect, as an interpretation of cyclical fluctuations, the central role in the income-expenditure theory is played by the ...

Author: Milton Friedman

Publisher: Princeton University Press

ISBN: 9780691188485

Category: Business & Economics

Page:

View: 997

DOWNLOAD & READ
What is the exact nature of the consumption function? Can this term be defined so that it will be consistent with empirical evidence and a valid instrument in the hands of future economic researchers and policy makers? In this volume a distinguished American economist presents a new theory of the consumption function, tests it against extensive statistical J material and suggests some of its significant implications. Central to the new theory is its sharp distinction between two concepts of income, measured income, or that which is recorded for a particular period, and permanent income, a longer-period concept in terms of which consumers decide how much to spend and how much to save. Milton Friedman suggests that the total amount spent on consumption is on the average the same fraction of permanent income, regardless of the size of permanent income. The magnitude of the fraction depends on variables such as interest rate, degree of uncertainty relating to occupation, ratio of wealth to income, family size, and so on. The hypothesis is shown to be consistent with budget studies and time series data, and some of its far-reaching implications are explored in the final chapter.
2018-06-05 By Milton Friedman