Using the Permanent Income Hypothesis for Forecasting

Ireland, Peter N.

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Using the Permanent Income Hypothesis for Forecasting

FRB Richmond Economic Quarterly, vol. 81, no. 1, Winter 1995, pp. 49-63

15 Pages Posted: 15 Nov 2012

See all articles by Peter N. Ireland

Peter N. Ireland

Boston College - Department of Economics

Date Written: 1995

Abstract

Milton Friedman’s permanent income hypothesis implies that data on savings help forecast future income growth. An econometric model that exploits this implication predicts that the U.S. economy will continue to expand in 1995.

Suggested Citation: Suggested Citation

Ireland, Peter N., Using the Permanent Income Hypothesis for Forecasting (1995). FRB Richmond Economic Quarterly, vol. 81, no. 1, Winter 1995, pp. 49-63, Available at SSRN: https://ssrn.com/abstract=2129374