Liquidity constraints and the permanent-income hypothesis

1991 ◽  
Vol 27 (1) ◽  
pp. 73-98 ◽  
Author(s):  
David E. Runkle
Keyword(s):  
Liquidity Constraints ◽  
Permanent Income ◽  
Permanent Income Hypothesis

The Consumption Response to Seasonal Income: Evidence from Japanese Public Pension Benefits

2011 ◽  
Vol 3 (4) ◽  
pp. 86-118 ◽  
Author(s):  
Melvin Stephens ◽  
Takashi Unayama
Keyword(s):  
Life Cycle ◽  
Panel Data ◽  
Liquidity Constraints ◽  
Relative Magnitude ◽  
Permanent Income ◽  
Public Pension ◽  
Precautionary Savings ◽  
Permanent Income Hypothesis ◽  
Pension Benefits ◽  
Household Panel Data

Japanese public pension benefits, which were distributed quarterly through February 1990, and every other month since then, induce substantial but predictable income fluctuations. The relative magnitude of the payments combined with the delay between payments yields a stronger test of the Life-Cycle/Permanent Income Hypothesis than in prior studies. Applying two identification strategies to monthly household panel data, we find that consumption significantly responds to quarterly benefit receipt. Additional analysis suggests that our findings cannot be explained by either liquidity constraints or precautionary savings motives. (JEL D12, D91, E21, H55)

Rural land and credit markets, the permanent income hypothesis and proto-industry: evidence from early modern Zurich

2007 ◽  
Vol 22 (3) ◽  
pp. 489-518 ◽  
Author(s):  
ULRICH PFISTER
Keyword(s):  
Life Course ◽  
Labour Force ◽  
Permanent Income ◽  
Land Markets ◽  
Permanent Income Hypothesis ◽  
Major Objective ◽  
Debt Contracting ◽  
The Family ◽  
The Life Course ◽  
Empirical Material

ABSTRACTThe study documents fluctuations of proto-industrial income, of occupation, debt and presence on land markets across the life course for rural households in a major proto-industrial region during the seventeenth and eighteenth centuries. These fluctuations are interpreted on the basis that a major objective of households is to equalize their income across different stages of their development. The permanent income hypothesis is then extended to take into account land purchases and debt-contracting that result from the need to adjust land and capital to fluctuations in the size of the family labour force across the family cycle and from endeavours to improve the family's welfare by increasing the labour to land ratio. The empirical material presented shows marked fluctuations of income from proto-industrial work across the life course and suggests the existence of permanent income-cum-accumulation strategies to cope with these fluctuations.

A Permanent Income Hypothesis for the Yugoslav Firm

Economica ◽  
1977 ◽  
Vol 44 (176) ◽  
pp. 393 ◽  
Author(s):  
Laura D'Andrea Tyson
Keyword(s):  
Permanent Income ◽  
Permanent Income Hypothesis
Sign in / Sign up

Export Citation Format

Share Document