The Permanent Income Hypothesis and Consumption Durability: Analysis Based on Japanese Panel Data
Fumio Hayashi
The Quarterly Journal of Economics, 1985, vol. 100, issue 4, 1083-1113
Abstract:
The permanent income hypothesis with durability of commodities is tested on a panel of about 2,000 Japanese households for several commodity groups. Under static expectations about real interest rates and for some class of utility functions, consumption, which is a distributed lag function of current and past expenditure, follows a martingale. Main empirical results are (i) the durability of commodities usually classified as services is substantial, (ii) the hypothesis applies to about 85 percent of the population consisting of wage earners, and (iii) income changes explain only a small fraction of the movements in expenditure.
Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (119)
Downloads: (external link)
http://hdl.handle.net/10.2307/1885676 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: The Permanent Income Hypothesis and Consumption Durability: Analysis Based on Japanese Panel Data (1984) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:100:y:1985:i:4:p:1083-1113.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva
More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().