1 option
Adjustment Costs, Durables, and Aggregate Consumption / Ben S. Bernanke.
- Format:
- Book
- Author/Creator:
- Bernanke, Ben S.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w1038.
- NBER working paper series no. w1038
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1982.
- Summary:
- Previous tests of the permanent income hypothesis (PIH) have focused on either nondurables or durables expenditures in isolation. This paper studies consumer purchases of nondurables and durables as the outcome of a single optimization problem.It is shown that the presence of adjustment costs of changing durables stocks may substantially affect the time series properties of both components of expenditure under the PIH.However, econometric tests based on this model do not contradict earlier rejections of the PIH in aggregate quarterly data.
- Notes:
- Print version record
- December 1982.
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