Theory of the Consumption Function
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A01=Milton Friedman
Absolute income hypothesis
Aggregate income
Analysis of variance
Author_Milton Friedman
Bond Yield
Capital expenditure
Capital gain
Capital market
Category=KCA
Category=KCB
Coefficient of variation
Commodity
Consumer behaviour
Consumer Goods
Consumption function
Correlation and dependence
Correlation coefficient
Cost basis
Cost of living
Customer lifetime value
Demand curve
Disposable and discretionary income
Distribution Yield
Econometrics
Economic development
Economic forecasting
Economic problem
Economics
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eq_isMigrated=2
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Estimation
Expected value
Family income
Function problem
Gross income
Gross national product
Imputed income
Income
Income distribution
Income in the United States
Inflation
Keynesian economics
Marginal propensity to consume
Market economy
Measures of national income and output
Method of averaging
National Bureau of Economic Research
Net income
Nominal interest rate
Ownership (psychology)
Pearson product-moment correlation coefficient
Permanent income hypothesis
Pooling (resource management)
Present value
Price
Price index
Probability distribution
Quantity theory of money
Rate of return
Rationing
Real versus nominal value (economics)
Relative income hypothesis
Relative value (economics)
Rental value
Sampling (statistics)
Saving
Substitution effect
Survey of Consumer Finances
Tax
Use value
Utility
Utilization
Value and Capital
Weight function
Weighted arithmetic mean
Product details
- ISBN 9780691138862
- Weight: 369g
- Dimensions: 152 x 235mm
- Publication Date: 17 Aug 2008
- Publisher: Princeton University Press
- Publication City/Country: US
- Product Form: Paperback
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What is the exact nature of the consumption function? Can this term be defined so that it will be consistent with empirical evidence and a valid instrument in the hands of future economic researchers and policy makers? In this volume a distinguished American economist presents a new theory of the consumption function, tests it against extensive statistical J material and suggests some of its significant implications. Central to the new theory is its sharp distinction between two concepts of income, measured income, or that which is recorded for a particular period, and permanent income, a longer-period concept in terms of which consumers decide how much to spend and how much to save. Milton Friedman suggests that the total amount spent on consumption is on the average the same fraction of permanent income, regardless of the size of permanent income. The magnitude of the fraction depends on variables such as interest rate, degree of uncertainty relating to occupation, ratio of wealth to income, family size, and so on. The hypothesis is shown to be consistent with budget studies and time series data, and some of its far-reaching implications are explored in the final chapter.
Milton Friedman (1912-2006) was awarded the Nobel Prize in Economics in 1976. He was a Senior Research Fellow at the Hoover Institution and had previously taught at the University of Chicago from 1946 to 1976. He was also a member of the research staff of the National Bureau of Economic Research from 1937 to 1981.
