EconPapers    
Economics at your fingertips  
 

A Cross-country Test of the Permanent Income Hypothesis

Joseph De Juan and John Seater ()
Authors registered in the RePEc Author Service: Joseph DeJuan ()

International Review of Applied Economics, 1997, vol. 11, issue 3, 451-468

Abstract: The Permanent Income Hypothesis (PIH) predicts an income innovation has the same size effect on consumption as on permanent income, an implication we examine with a cross-country test proposed by Kormendi & LaHaye (1984). The data from industrial countries support PIH but data from developing countries do not. Also, however, data from countries with high quality national income accounts support PIH whereas data from countries with low quality accounts do not. The stage of economic development and data quality are highly correlated. The evidence suggests that the results may be driven primarily by data quality differences rather than systematically different behaviour between industrial and developing countries.

Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/02692179700000029 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A Cross Country Test of the Permanent Income Hypothesis
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:taf:irapec:v:11:y:1997:i:3:p:451-468

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIRA20

DOI: 10.1080/02692179700000029

Access Statistics for this article

International Review of Applied Economics is currently edited by Professor Malcolm Sawyer

More articles in International Review of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-31
Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:451-468