Permanent Income, Liquidity, and Expenditure on Automobiles: Evidence from Panel Data

Several 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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Year of publication:	1981-09
Authors:	Bernanke, Ben S.
Institutions:	National Bureau of Economic Research (NBER)

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Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	EFG 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. Number 0756
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005720238