Household consumption function based on permanent income hypothesis: a systematic review

• Main Authors: Wong, Sing Yun, Samsu, Siti Hajar, Yassin, Jain, Taasim, Shairil Izwan, Madli, Faerozh
• Format: Article
• Published: Human Resource Management Academic Research Society 2023
• Online Access: http://psasir.upm.edu.my/id/eprint/108195/; https://hrmars.com/index.php/IJAREMS/article/view/16654/Household-Consumption-Function-Based-on-Permanent-Income-Hypothesis-A-Systematic-Review
• Institution: Universiti Putra Malaysia

The Permanent Income Hypothesis was first proposed by Milton Friedman in the 1950s and has been an important theory in the field of macroeconomics. According to this theory, the spending behavior of individuals is based on their long-term average income rather than their current income. The theory p...