The Assessment: Consumer Expenditure.
This article aims to illuminate two sets of consumption puzzles. The first concerns the behavior of aggregate saving rates in the 1980s and early 1990s: collapse and rebound in Scandinavia and the U.K., and, apparently, a more secular decline in the U.S. The second set of puzzles concerns various apparent contradictions of the rational expectations permanent income hypothesis, e.g., in time series, the excess sensitivity of consumption changes to anticipated income changes and, in cross-secti...Expand abstract
- Oxford Review of Economic Policy
- Publication date:
- Local pid:
- Copyright date: