EconPapers    
Economics at your fingertips  
 

Intertemporal Choice and Inequality

Angus Deaton () and Christina Paxson

Journal of Political Economy, 1994, vol. 102, issue 3, 437-67

Abstract: The permanent income hypothesis implies that, for any cohort of people, inequality in consumption and income should grow with age, a prediction that is here confirmed using data from eleven years of household survey data from the United States, twenty-two years from Great Britain, and fourteen years from Taiwan. In the permanent income hypothesis, the increase in inequality reflects the cumulative effect of luck on consumption. Other models of intertemporal choice--such as those with strong precautionary motives or liquidity constraints--can limit or even prevent the spread of inequality, as can insurance arrangements that share risk across individuals. Copyright 1994 by University of Chicago Press.

Date: 1994
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (362) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/261941 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

Related works:
Working Paper: Intertemporal Choice and Inequality (1993)
Working Paper: Intertemporal Choice and Inequality (1993) Downloads
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:ucp:jpolec:v:102:y:1994:i:3:p:437-67

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2020-02-09
Handle: RePEc:ucp:jpolec:v:102:y:1994:i:3:p:437-67