New Result in Consumption Theory: Change in Savings and Income Growth – Nineteen Years Later

Cheng Wu

MPRA Paper from University Library of Munich, Germany

Abstract: This new version uses the definitions and some of the results found in Sargent’s Macroeconomic Theory. Hall’s (1978) proof of the corollary 4, ct+1 = ct, can be found in Flavin (1981). Writing the same consumption stated in Flavin, for period t+1, in a different way for the summation of the expected future incomes, it is possible to show that changes in savings is a function of income growth. This new result has implications, for instance, in Keynes’ (1936) saving and dissaving.

Keywords: consumption; martingale; savings; growth; income (search for similar items in EconPapers)
JEL-codes: B00 E2 E21 E6 E60 F0 F00 J3 J30 N1 N10 (search for similar items in EconPapers)
Date: 2016-02-17
New Economics Papers: this item is included in nep-hpe and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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