Search for tag: "permanent income consumption theory"

The Permanent Income Consumption Theory

This chapter focuses on the permanent income view of consumption and saving, delving deeply into mechanics and also exploring how taxes can be incorporated into a discussion of consumption and…

From  SDG Academy 10 plays

The Life Cycle Model of Consumption and Saving

This chapter continues to explore the concept of permanent income, but in the setting of a household economy that lives for many decades -- what is called the life cycle model of consumption and…

From  SDG Academy 24 plays

Consumption, Saving, and the Intertemporal Budget Constraint

This chapter focuses on saving and investment, which are the main drivers of capital accumulation. By building up the stock of capital, the economy becomes more productive in the future. Consumption…

From  SDG Academy 65 plays