Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data
AbstractSeveral recent papers have tested the permanent income-cum- rational expectations hypothesis using data on nondurable or semi-durable consumption. We show how this approach can be extended to the case of durables. An application to panel data on automobile expenditures reveals no evidence against the permanent income hypothesis. This result is unchanged in subsamples segregated by family holdings of liquid assets.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0756.
Date of creation: Sep 1981
Date of revision:
Publication status: published as Bernanke, Ben S. "Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data." Quarterly Journal of Economics, Vol. 99, No. 3, August 1984, pp. 587-614.
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- Bernanke, Ben S, 1984. "Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data," The Quarterly Journal of Economics, MIT Press, vol. 99(3), pages 587-614, August.
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