| Description |
1 online resource (263 pages) |
| Contents |
TABLE OF CONTENTS; DEDICATION; PREFACE; LIST OF TABLES; LIST OF FIGURES; CHAPTER I-Introduction; CHAPTER II-The Implications of the Pure Theory of Consumer Behavior; 1. Complete Certainty; 2. The Effect of Uncertainty; a. THE INDIFFERENCE CURVE DIAGRAM; b. MOTIVES FOR HOLDING WEALTH; 3. The Relation between the Individual and the Aggregate Consumption Function; CHAPTER III-The Permanent Income Hypothesis; 1. The Interpretation of Data on the Income and Consumption of Consumer Units; 2. A Formal Statement of the Permanent Income Hypothesis |
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3. The Relation between Measured Consumption and Measured IncomeCHAPTER IV-Consistency of the Permanent Income Hypothesis with Existing Evidence on the Relation between Consumption and Income: Budget Studies; 1. Temporal Changes in Inequality of Income; 2. Consumption-income Regressions for Different Dates and Groups; a. TEMPORAL DIFFERENCES; b. DIFFERENCES AMONG COUNTRIES; c. CONSUMPTION OF FARM AND NONFARM FAMILIES; d. OCCUPATIONAL CHARACTERISTICS OF FAMILIES; e. NEGRO AND WHITE FAMILIES; f. A DIGRESSION ON THE USE OF PARTIAL CORRELATION IN CONSUMPTION RESEARCH; 3. Savings and Age |
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4. The Effect of Change in Incomea. THE FSA DATA; b. THE SURVEY OF CONSUMER FINANCES DATA; c. THE SIGNIFICANCE OF THE COMPARISONS; Appendix to Section 4-The Effect of Change in Income on the Regression of Consumption on Income; CHAPTER V-Consistency of the Permanent Income Hypothesis with Existing Evidence on the Relation between Consumption and Income: Time Series Data; 1. Recent Long-period Estimates of Aggregate Savings for the United States; a. THEIR GENERAL PATTERN; b. THE CONSTANCY OF k*; 2. Regressions of Consumption on Current Income; a. EFFECT OF PERIOD COVERED |
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B. EFFECT OF FORM OF DATAc. THE RELATION BETWEEN TIME SERIES AND BUDGET ELASTICITIES; 3. Regressions of Consumption on Current and Past Income; a. FUNCTIONS BY MODIGLIANI, DUESENBERRY, AND MACK; b. ALTERNATIVE FUNCTIONS FITTED TO DATA FOR A LONG PERIOD; Appendix to Section 3-Effect on Multiple Correlation of Common Errors in Measured Consumption and Current Income; CHAPTER VI-The Relation Between the Permanent Income and Relative Income Hypotheses; 1. Relative Income Status Measured by Ratio of Measured Income to Average Income |
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2. Relative Income Status Measured by Percentile Position in the Income Distribution3. The Basis for the Relative Income Hypothesis; 4. The Relative versus the Absolute Income Hypotheses; a. CONTINUOUS BUDGET DATA; b. GEOGRAPHICAL BUDGET COMPARISONS; c. SUMMARY EVALUATION OF EVIDENCE; CHAPTER VII-Evidence from Income Data on the Relative Importance of Permanent and Transitory Components of Income; 1. A Method of Estimating Py; 2. Empirical Evidence on Py; 3. Comparison of Estimates of Py with Estimated Income Elasticity of Consumption |
| Summary |
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. -- Provided by publisher |
| Notes |
4. Correlation of the Ratio of Savings to Income in Consecutive Years |
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Print version record |
| Subject |
Consumption (Economics)
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Consumption (Economics) -- Mathematical models.
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Consumption (Economics)
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Consumption (Economics) -- Mathematical models.
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| Form |
Electronic book
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| ISBN |
9781786258915 |
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1786258919 |
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