Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data

Ben Bernanke

The Quarterly Journal of Economics, 1984, vol. 99, issue 3, 587-614

Abstract: Several recent papers have tested the permanent income-cum-rational expectations hypothesis using data on nondurable or semidurable consumption. We show how this approach can be extended to the case of durables. An application to panel data on automobile expenditures reveals no evidence against the permanent income hypothesis. This result is unchanged in subsamples segregated by family holdings of liquid assets.

Date: 1984
References: Add references at CitEc
Citations: View citations in EconPapers (74)

Downloads: (external link)
http://hdl.handle.net/10.2307/1885966 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data (1981)
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:99:y:1984:i:3:p:587-614.

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 ().