Empirical Evidence Short period evidence support Keynesian Long-run empirical studies:Kuznets(1942 NBER),over a longer span of time (1870's - 1940's)the savings ratio remained constant, despite large changes in income. Relative Income Hypothesis Permanent Income Hypothesis Life-cycle Income Hypothesis 电子科大经管学院马捷 11
Empirical Evidence Short period evidence support Keynesian Long-run empirical studies: Kuznets(1942 NBER), over a longer span of time (1870's - 1940's) the savings ratio remained constant, despite large changes in income. • Relative Income Hypothesis • Permanent Income Hypothesis • Life-cycle Income Hypothesis 电子科大经管学院 马捷 11
Relative Income Hypothesis The percentage of income consumed by an individual depends on his percentile position within the income distribution. Present consumption is not influenced merely by present levels of absolute and relative income,but also by levels of consumption attained in previous period 电子科大经管学院马捷 12
Relative Income Hypothesis The percentage of income consumed by an individual depends on his percentile position within the income distribution. Present consumption is not influenced merely by present levels of absolute and relative income, but also by levels of consumption attained in previous period. 电子科大经管学院 马捷 12