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Involuntary saving through unanticipated inflation: Some further empirical evidence

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Abstract

In a recent paper Deaton formulated a novel disequilibrium theory of saving behaviour. The essence of his hypothesis is that individual consumers have no possible means of distinguishing relative from absolute price changes. This hypothesises subject to further empirical testing in our note. Using data for Canada, Japan, the United Kingdom and the United States we re-examine the hypothesis assuming either static, adaptive, extrapolative or rational price and output expectations.

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Authors and Affiliations

  1. Dept. of Economic and Business Studies, The University of Liverpool, 11 Abercromby Square, L69 3BX, Liverpool, Great Britain

    C. Ioannidis & D. A. Peel

Authors
  1. C. Ioannidis
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  2. D. A. Peel
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We are grateful to Patrick Minford for helpful comments.

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Ioannidis, C., Peel, D.A. Involuntary saving through unanticipated inflation: Some further empirical evidence. Empirical Economics 8, 87–92 (1983). https://doi.org/10.1007/BF01973192

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  • DOI: https://doi.org/10.1007/BF01973192

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