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wp0401.pdf
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Friedman's book on the Ӄonsumption FunctionԠis one of the great works of Economics demonstrating how the interplay between theoretical ideas and data analysis could lead to major policy implications. We present a short review of Friedman's Permanent Income Hypothesis, the origins of the idea and its theoretical foundations. We give a brief overview of its influence in modern economics and discuss some relevant empirical results and the way they relate to the original approach taken by Friedman.
Authors
![Costas Meghir](/sites/default/files/styles/square_desktop/public/2022-07/Costas%20Meghir.jpg?itok=_N-Qaly5)
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Working Paper details
- DOI
- 10.1920/wp.ifs.2004.0401
- Publisher
- IFS
Suggested citation
Meghir, C. (2004). A retrospective on Friedman's theory of permanent income. London: IFS. Available at: https://ifs.org.uk/publications/retrospective-friedmans-theory-permanent-income (accessed: 30 June 2024).
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