A present value test of habits and the current account!

Article Abstract:

A paper on solving the excess volatility problems present in standard intertemporal current account (ICA) by incorporating consumption habits in to the standard model is presented. The model shows that significant habit formation implies increased current account volatility, as sluggishness is introduced in to the consumption adjustment process that follows income shocks.

Economic development models

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Precautionary saving and partially observed income

Article Abstract:

A study of agent's labor income, and the effect of each component thereof on the shocks, which have a different degree of persistence and volatility, is presented. A precautionary saving method is suggested in view of the shocks.

Management dynamics, Analysis, Management, Labor economics, Savings, Company business management, Labour economics

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Generalizing the permanent - income hypothesis: revisiting Friedman's conjecture on consumption

Article Abstract:

Speculation on Permanent income is presented through the consumption hypothesis of Friedman.

Permanent income theory

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