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A Test of the Rational Expectations‐Permanent Income Hypothesis for Singapore Revisited
Author(s) -
Wilson Peter
Publication year - 1996
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.1996.tb00164.x
Subject(s) - economics , permanent income hypothesis , rational expectations , contrast (vision) , test (biology) , set (abstract data type) , econometrics , macroeconomics , life cycle hypothesis , programming language , paleontology , artificial intelligence , biology , computer science
This paper repeats Thornton’s (1993) test of the rational expectations‐permanent income hypothesis (REPIH) for Singapore using an alternative data set based upon real disposable income and real consumer expenditure. In contrast to Thornton, but in line with most other studies, we find anticipated income to be significant and interpret this as evidence against the REPIH.