Irish Consumption: Testing the Permanent Income Hypothesis

Maurice Roche

Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth

Abstract: The "German view" of expansionary fiscal contractions is that the expansionary expectional effect would outweigh the Kynesian effect of a sever government spending cut. This view relies on consumers behaving according to the permanent income hypothesis; who see spending custs as signals to future income tax cuts and thus higher permanent income. In this paper we investigate whether the permanent income hypothesis is consistent with Irish data and find no supporting evidence.

Keywords: CONSUMPTION; INCOME; TESTS (search for similar items in EconPapers)
JEL-codes: O23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1994
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:may:mayecw:n520594

Access Statistics for this paper

More papers in Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).