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Consumer confidence and the permanent income hypothesis: a note. (Research Notes).

Publication: International Advances in Economic Research
Publication Date: 01-MAY-02
Format: Online
Delivery: Immediate Online Access
Full Article Title: Consumer confidence and the permanent income hypothesis: a note. (Research Notes).(Brief Article)

Article Excerpt
The well-documented predictive power of consumer confidence calls into question the validity of the permanent income hypothesis (PIH). By developing a variant of the PIH that casts consumer confidence as a semi-stochastic shift term to preferences, however, this paper suggests that consumer confidence need not be inconsistent with the...

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