Construct · 1 fields · 1 citations

excess sensitivity of consumption: a standalone construct

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Macroeconomics

consumption responding to predictable changes in current income more than the permanent income hypothesis allows.

In macroeconomics, excess sensitivity of consumption refers to consumption responding to predictable changes in current income more than the permanent income hypothesis allows. This meaning comes from Flavin (1981) in Journal of Political Economy.[1]

Unit
Recovery means
Measured by

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Nearby constructs

consumption3 fields · 5 citationsjingle · one word, three constructs current3 fields · 6 citationsjingle · one word, three constructs hypothesis2 fields · 2 citationsjingle · one word, two constructs

References

Flavin, M. A. (1981). The Adjustment of Consumption to Changing Expectations About Future Income. Journal of Political Economy, 89(5), 974-1009. https://doi.org/10.1086/261016

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