Permanent Income, Liquidity, and Adjustments of Automobile Stocks: Evidence from Panel Data.
A recent article by Ben Bernanke (1984) tests the rational expectations-permanent income hypothesis using panel data on automobile expenditures. He finds no evidence refuting the hypothesis. This paper incorporates a threshold adjustment process into Bernanke's model. Estimations based on a subset of the data used by Bernanke reveal evidence that resale market imperfections and credit market constraints have important effects on automobile expenditures. Copyright 1991, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Year of publication: |
1991
|
---|---|
Authors: | Lam, Pok-Sang |
Published in: |
The Quarterly Journal of Economics. - MIT Press. - Vol. 106.1991, 1, p. 203-30
|
Publisher: |
MIT Press |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The Equity Premium and the Risk Free Rate: Matching the Moments
Cecchetti, Stephen, (1991)
-
Asset Pricing with Distorted Beliefs: Are Equity Returns Too Good To Be True?
Cecchetti, Stephen, (1998)
-
The consumption function under exponential utility : An extension
Lam, Pok-sang, (1987)
- More ...