Consumption volatility and income persistence in the permanent income model

MARIO FORNI
{"title":"Consumption volatility and income persistence in the permanent income model","authors":"MARIO FORNI","doi":"10.1006/reco.1996.0016","DOIUrl":null,"url":null,"abstract":"<div><p>Deaton's “excess smoothness” question can be reformulated by focusing attention on total income rather than labour income: the permanent income theory predicts that the relative volatility of consumption is equal to total income persistence, a fact that is contradicted by empirical evidence. This formulation is more general than the original one in that it is independent of the value of the interest rate, the univariate dynamics of labour income and the information set of the representative consumer. When properly formulated, the excess smoothness problem cannot be solved within Quah's superior information model; as a consequence, the interest of alternative solutions such as aggregation models is increased.</p></div>","PeriodicalId":101136,"journal":{"name":"Ricerche Economiche","volume":"50 3","pages":"Pages 223-234"},"PeriodicalIF":0.0000,"publicationDate":"1996-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1006/reco.1996.0016","citationCount":"6","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Ricerche Economiche","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0035505496900166","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 6

Abstract

Deaton's “excess smoothness” question can be reformulated by focusing attention on total income rather than labour income: the permanent income theory predicts that the relative volatility of consumption is equal to total income persistence, a fact that is contradicted by empirical evidence. This formulation is more general than the original one in that it is independent of the value of the interest rate, the univariate dynamics of labour income and the information set of the representative consumer. When properly formulated, the excess smoothness problem cannot be solved within Quah's superior information model; as a consequence, the interest of alternative solutions such as aggregation models is increased.

查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
永久收入模型中的消费波动与收入持续性
迪顿的“过度平滑”问题可以通过关注总收入而不是劳动收入来重新表述:永久收入理论预测,消费的相对波动性等于总收入的持久性,这一事实与经验证据相矛盾。这个公式比原来的公式更通用,因为它独立于利率的价值,劳动收入的单变量动态和代表性消费者的信息集。在适当的表述下,过剩平滑问题不能在Quah的优越信息模型内得到解决;因此,对诸如聚合模型之类的替代解决方案的兴趣增加了。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
自引率
0.00%
发文量
0
期刊最新文献
Externality pricing in club economies Complements and substitutes in common agency Incentives and income taxation: the implementation of individual revenue requirement functions Taste-homogeneity of optimal jurisdictions in a Tiebout economy with crowding types and endogenous educational investment choices Editors' Note
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1