Gerlach-Kristen, Petra - In: The Economic and Social Review 45 (2014) 4, pp. 511-535
The Permanent Income Hypothesis (PIH) states that consumption should depend on long-term income expectations and not on temporary swings in income. This paper uses Irish household data from three Household Budget Surveys between 1994 and 2005 to test the PIH. Households that fail to consume...