IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Does Permanent Income Hypothesis Hold for African Countries? An Empirical Evidence

Listed author(s):
  • Emmanuel Anoruo
  • Habtu Braha

This paper examines the validity of the permanent income hypothesis for a group of 12 African countries using cointegration procedures. Specifically, this paper utilizes the bounds cointegration test proposed by Pesaran et al. (2001) and the C/S procedure advanced by Gregory and Hansen (1996). In addition, the study implements the fully modified OLS model (FMOLS) to determine the long-run relationship between consumption and income. The results from the study suggest that (a) there is a long-run relationship between consumption and income and (b) real income is an important determinant of consumption. Above all, the study finds that the relationship between consumption and real income is structurally stable for most of the sample countries. In all, the results indicate that innovations in real income have implications for consumption for the sample countries.

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.

Article provided by IUP Publications in its journal The IUP Journal of Monetary Economics.

Volume (Year): V (2007)
Issue (Month): 2 (May)
Pages: 36-50

in new window

Handle: RePEc:icf:icfjmo:v:05:y:2007:i:2:p:36-50
Contact details of provider:

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

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

When requesting a correction, please mention this item's handle: RePEc:icf:icfjmo:v:05:y:2007:i:2:p:36-50. 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: (G R K Murty)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.