Permanent income hypothesis
Hipótesis del ingreso permanente
- Date
- 1957 · confidence high
- Place
- Chicago, Illinois, United States
- Credited to
- Milton Friedman
- Field
- Knowledge & symbols
What was discovered
Economic model in which people's consumption depends on their expected long-term permanent income rather than only current earnings, explaining why consumption varies less than income; formulated by Milton Friedman.
What it led to
- macroeconomic consumption models
- fiscal stimulus policy effectiveness debates
- Modigliani's life-cycle model
- consumer behavior economics