Advanced Search
MyIDEAS: Login to save this article or follow this journal

How Forward Looking Are Consumers? Further Evidence for the United States


Author Info

  • Daniel Himarios
Registered author(s):


    This paper extends a standard model of consumption to test for the existence of “myopic” consumers. The extended model includes “rule-of-thumb” consumers as well as consumers who are assumed to solve a dynamic programming problem. The model allows this second set of consumers, however, to be “boundedly rational.” For a variety of reasons, they may be unable to fully account for their future uncertain labor income. The model predicts that this inability to correctly value future resources leads to the breakdown of the simple permanent income hypothesis and that consumption responds to predictable changes in income. Using data for the United States for the period 1951–1990, the paper finds evidence of such myopic behavior.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 66 (2000)
    Issue (Month): 4 (April)
    Pages: 991-1000

    as in new window
    Handle: RePEc:sej:ancoec:v:66:4:y:2000:p:991-1000

    Contact details of provider:
    Web page:
    More information through EDIRC

    Related research



    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Buffie, Edward F., 2013. "The Taylor principle fights back, Part I," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 37(12), pages 2771-2795.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:66:4:y:2000:p:991-1000. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.