Kubota, Kohei; Fukushige, Mototsugu - Graduate School of Economics, Osaka University - 2009
Life-Cycle/Permanent Income Hypothesis (LCPIH) could be decomposed into the following three hypotheses: (1) Rational expectation in a narrow sense; (2) Householdsf having planning ability; and (3) Householdsf having execution ability for his optimal consumption plan. We test the LCPIH by parts,...