Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
By Staff Reporters
***
***
Angus Deaton’s 1980s studies, including one called “Why is consumption so smooth?” gave birth to a concept called the Deaton Paradox — in short, sharp shocks to income didn’t seem to cause similarly large shocks to consumption.
IOW: Consumption varies surprisingly smoothly despite sharp variations in income.
CITE: https://www.r2library.com/Resource/Title/0826102549
According to David Henderson, this was an important development in understanding the actions of consumers, causing economists to rethink the “permanent income hypothesis” developed by Milton Friedman, which suggested that people spend based on their lifetime income.
And, Mike Bird wrote a good article on Deaton the highlighted the Nobel Prize in Economics Committee.
COMMENTS APPRECIATED
Subscribe Today!
***
***
Share this:
Filed under: "Ask-an-Advisor", Financial Planning, Funding Basics, Glossary Terms, Health Economics, iMBA, iMBA, Inc., Investing, Jokes and Puns | Tagged: Angus Deaton, david henderson, deaton paradox, deaton's paradox, iMBA, mike bird, Milton Friedman | Leave a comment »
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 