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Life‐Cycle Consumption under Rational Expectations: Some Australian Evidence*
Author(s) -
JOHNSON PAUL
Publication year - 1983
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1983.tb00824.x
Subject(s) - economics , consumption (sociology) , unemployment , rational expectations , life cycle hypothesis , econometrics , measure (data warehouse) , unemployment rate , macroeconomics , social science , sociology , computer science , database
Using Australian data, this note tests the srochastic implications of Hall's (1978) national‐expectations life‐cycle consumption model. The strong version of the hypothesis can only be rejected using lagged values of the change in the unemployment rate and a particular measure of disposable income.