A Theory of the Consumption Function

A Theory of the Consumption Function

2015 Reprint of 1957Edition. Full Facsimile of the original edition. Not reproduced with Optical Recognition Software. In this book Friedman developed the permanent income hypothesis (PIH). As classical Keynesian consumption theory was unable to explain the constancy of savings rate in the face of rising real incomes in the United States, a number of new theories of consumer behavior emerged. In his book, Friedman posits a theory that encompasses many of the competing hypotheses at the time as special cases and presents statistical evidence in support of his theory. "Friedman described Keynes's theory of a declining propensity to consume as 'very imaginative and thoughtful.' But in "A Theory of the Consumption Function" (1957), he demonstrated that while the hypothesis seemed to make psychological sense, it was empirically false. In relating income to propensity to consume, Keynes had erred in not distinguishing between 'transitory' and 'permanent' income. In fact, consumption does not decline as incomes generally rise. Economists across the political spectrum agreed with Friedman's refutation of Keynes...."--James A. Nuechterlein, Commentary


Author
Publisher
Release Date
ISBN 9781614278122
Pages 258 pages
Rating 4/5 (21 users)

More Books:

A Theory of the Consumption Function
Language: en
Pages: 258
Authors: Milton Friedman
Categories: Business & Economics
Type: BOOK - Published: 2015-04-28 - Publisher:

2015 Reprint of 1957Edition. Full Facsimile of the original edition. Not reproduced with Optical Recognition Software. In this book Friedman developed the perma
Theory of the Consumption Function
Language: en
Pages: 259
Authors: Milton Friedman
Categories: Business & Economics
Type: BOOK - Published: 2008-08-17 - Publisher: Princeton University Press

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 t
A Theory of the Consumption Function
Language: en
Pages: 256
Authors: Milton Friedman
Categories: Business & Economics
Type: BOOK - Published: 2020-10-14 - Publisher: Courier Dover Publications

This thought-provoking and influential book by a distinguished economist examines whether consumption behavior can be defined in a way that's supported by empir
The Economics of Consumption
Language: en
Pages: 313
Authors: Tullio Jappelli
Categories: Business & Economics
Type: BOOK - Published: 2017 - Publisher: Oxford University Press

In The Economics of Consumption, Tullio Jappelli and Luigi Pistaferri provide a comprehensive examination of the most important developments in the field of con
Consumption Behaviour in India - Theory And Evidence (HB)
Language: en
Pages: 406
Authors: A.R. Prasad
Categories:
Type: BOOK - Published: 2001-12 - Publisher: Reliance Publishing House

Consumption economics is the branch of economics that focuses on consumers behaviour as they allocate economic resources to satisfy their wants. Consumption eco
A Study of the Long Run Consumption Lag
Language: en
Pages: 384
Authors: Tzung Tsann Mu
Categories:
Type: BOOK - Published: 1970 - Publisher:

The Rational Consumer
Language: en
Pages: 212
Authors: Robert Ernest Hall
Categories: Business & Economics
Type: BOOK - Published: 1990 - Publisher: MIT Press

The Rational Consumer brings together eight articles that represent key points in the development of Robert Hall's ideas on consumption over the past two decade
Consumption Pattern Theory
Language: de
Pages: 128
Authors: A. Kasi Rajan
Categories:
Type: BOOK - Published: 2012-04 - Publisher: LAP Lambert Academic Publishing

The link between the consumer expenditure and the income is one of the established relationship in macro economics. Since consumption is one of the components o
Essays in Economics
Language: en
Pages: 524
Authors: James Tobin
Categories: Business & Economics
Type: BOOK - Published: 1987 - Publisher: MIT Press

Volume 2 of James Tobin's Essays in Economics brings together twenty papers published between 1940 and 1972. These cover macroeconomics, particularly the theory
Milton Friedman on Economics
Language: en
Pages: 180
Authors: Milton Friedman
Categories: Business & Economics
Type: BOOK - Published: 2010-11-15 - Publisher: University of Chicago Press

On his death in the autumn of 2006, Milton Friedman was lauded as “the grandmaster of free-market economic theory in the postwar era” by the New York Times