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Testing the stochastic implications of the life cycle-permanent income hypothesis using U.K. regional time-series data

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Testing the stochastic implications of the life cycle-permanent income hypothesis using U.K. regional time-series data. / Gausden, Robert; Whitfield, I.

In: Applied Economics, Vol. 32, No. 10, 2000, p. 1299-1310.

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@article{a6c08e2517b54ccfb712345359d5e9c9,
title = "Testing the stochastic implications of the life cycle-permanent income hypothesis using U.K. regional time-series data",
abstract = "This paper applies exclusion tests of the pure life cycle—permanent income hypothesis (LCPIH) to time-series data on each of the eleven standard regions of the UK. Data are annual and extend from 1975 to 1994. The results obtained suggest that there are considerable differences in consumption behaviour across the regions. Theory has indicated that a departure of consumption behaviour from that predicted by the LCPIH can occur because of a change in unemployment. Consequently, a comparison is undertaken of the empirical results obtained for the eleven regions and the respective unemployment movements. Following this comparison, it is possible to conclude that the contrasting unemployment experiences of the regions of the UK have contributed significantly to, yet cannot account for fully, the observed differences in consumption behaviour.",
author = "Robert Gausden and I. Whitfield",
year = "2000",
doi = "10.1080/000368400404452",
language = "English",
volume = "32",
pages = "1299--1310",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Routledge",
number = "10",

}

RIS

TY - JOUR

T1 - Testing the stochastic implications of the life cycle-permanent income hypothesis using U.K. regional time-series data

AU - Gausden, Robert

AU - Whitfield, I.

PY - 2000

Y1 - 2000

N2 - This paper applies exclusion tests of the pure life cycle—permanent income hypothesis (LCPIH) to time-series data on each of the eleven standard regions of the UK. Data are annual and extend from 1975 to 1994. The results obtained suggest that there are considerable differences in consumption behaviour across the regions. Theory has indicated that a departure of consumption behaviour from that predicted by the LCPIH can occur because of a change in unemployment. Consequently, a comparison is undertaken of the empirical results obtained for the eleven regions and the respective unemployment movements. Following this comparison, it is possible to conclude that the contrasting unemployment experiences of the regions of the UK have contributed significantly to, yet cannot account for fully, the observed differences in consumption behaviour.

AB - This paper applies exclusion tests of the pure life cycle—permanent income hypothesis (LCPIH) to time-series data on each of the eleven standard regions of the UK. Data are annual and extend from 1975 to 1994. The results obtained suggest that there are considerable differences in consumption behaviour across the regions. Theory has indicated that a departure of consumption behaviour from that predicted by the LCPIH can occur because of a change in unemployment. Consequently, a comparison is undertaken of the empirical results obtained for the eleven regions and the respective unemployment movements. Following this comparison, it is possible to conclude that the contrasting unemployment experiences of the regions of the UK have contributed significantly to, yet cannot account for fully, the observed differences in consumption behaviour.

U2 - 10.1080/000368400404452

DO - 10.1080/000368400404452

M3 - Article

VL - 32

SP - 1299

EP - 1310

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

IS - 10

ER -

ID: 135247