Masuda, Kazuto - In: Economics Bulletin 31 (2011) 1, pp. 35-40
Permanent Income Hypothesis (hereafter, PIH) is one of the central concepts in macroeconomics. Single equation version of PIH is often appeared in textbooks and academic papers. But, even in single equation version of PIH Romer(2006) suggested, to get economic insights from estimation, we need...