Angus Deaton
- Published in print:
- 1992
- Published Online:
- November 2003
- ISBN:
- 9780198288244
- eISBN:
- 9780191596131
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288247.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Develops the themes of Ch. 3 by exploring how consumption responds to innovations in income. The focus is on the econometric enquiry and presents insights into how measured income differs from ...
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Develops the themes of Ch. 3 by exploring how consumption responds to innovations in income. The focus is on the econometric enquiry and presents insights into how measured income differs from permanent income and how to deal with the non‐stationarity of income. The chapter concludes by looking at how to analyse cases where the agents base their consumption plans on private information that is not available to the econometrician.Less
Develops the themes of Ch. 3 by exploring how consumption responds to innovations in income. The focus is on the econometric enquiry and presents insights into how measured income differs from permanent income and how to deal with the non‐stationarity of income. The chapter concludes by looking at how to analyse cases where the agents base their consumption plans on private information that is not available to the econometrician.
