Empirical Economics

, Volume 12, Issue 3, pp 137–156 | Cite as

On testing the permanent income hypothesis and rational expectations

  • E. Dor
  • T. Thurston
  • D. Weiserbs


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Bilson JFO (1980) The rational expectations approach to the consumption function: a multicountry study. Europ Econ Review 14:273–297Google Scholar
  2. Davidson JE, Hendry DF (1981) Interpreting econometric evidence: consumer's expenditure in the U.K. European Economic Review 16:177–192Google Scholar
  3. Davidson JE, Hendry DF, Srba F, Yeo S (1978) Econometric modelling of the aggregate time series relationship between consumer's. Expenditure and income in the United Kingdom. Economic Journal 88:661–692Google Scholar
  4. Deaton A (1977) Involuntary saving through unanticipated inflation. American Economic Review 67:899–910Google Scholar
  5. Flavin MA (1980) The adjustment of consumption to changing expectations about future income. J of Pol Econ 89/5:974–1009Google Scholar
  6. Friedman BM (1979) Optimal expectations and the extreme information assumptions of “Rational expectations macromodels”. Journal of Monetary Economics 5:23–41Google Scholar
  7. Hall RE (1978) Stochastic implications of the life-cycle permanent income hypothesis: Theory and evidence. Journal of Political Economy 86:971–988Google Scholar
  8. Hayashi F (1981) The permanent income hypothesis: Estimation and testing by instrumental variables. Journal of Political Economy 90/5:971–987Google Scholar
  9. Mankiw NG, Shapiro MD (1985) Trends, random walks and tests of the permanent income hypothesis. Journal of Monetary Economics 16:165–174Google Scholar
  10. Muellbauer J (1983) Surprises in the consumption function. Economic Journal, Supplement, pp 34–50Google Scholar
  11. Sargent TJ (1978) Rational expectations, econometric exogeneity, and consumption. Journal of political Economy 86/4:673–700Google Scholar
  12. Wickens MR, Molana H (1984) Stochastic life-cycle theory with varying interest rates and prices. Economic Journal (Conference Papers) 94:133–147Google Scholar

Copyright information

© Physica-Verlag 1987

Authors and Affiliations

  • E. Dor
    • 1
  • T. Thurston
    • 2
  • D. Weiserbs
    • 1
  1. 1.Université Catholique de LouvainBelgium
  2. 2.Queens CollegeCity University of New YorkUSA

Personalised recommendations