Testing Hall's permanent income hypothesis for a developing country: the case of Fiji
AbstractHall (1978) has stimulated considerable controversy and empirical work on testing the validity of the permanent income hypothesis (PIH). Much of this work is on the developed countries. In the developing countries per capita incomes show larger fluctuations and for the majority, opportunities for intertemporal substitution are limited. This paper uses the extended framework of Campbell and Mankiw (1989) and finds that current consumption is determined by current income for more than two thirds of the consumers in Fiji.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 12 (2005)
Issue (Month): 4 ()
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Web page: http://www.tandfonline.com/RAEL20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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National Bureau of Economic Research, Inc.
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NBER Working Papers
0720, National Bureau of Economic Research, Inc.
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- Ashok S. Guha & Brishti Guha, 2005.
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- Becchetti, Leonardo & Costantino, Marco, 2008. "The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers," World Development, Elsevier, vol. 36(5), pages 823-842, May.
- Kumar, Saten, 2009. "A Re-examination of Private Consumption in Fiji," MPRA Paper 18706, University Library of Munich, Germany.
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