This is a preview. Log in through your library . Abstract This paper examines a new approach in estimating the marginal propensity to consume permanent income on the basis of time-series data. The ...

This paper shows that U.S. monthly consumption data are consistent with the permanent income hypothesis (PIH) when transitory consumption and temporal aggregation effects are jointly incorporated into ...

It’s a common assumption in economics that people are long-term thinkers about spending. They consume at rates pegged to their expected earnings over a lifetime—their permanent income, as Milton ...