But if so, then consumption does not really depend primarily on permanent income.

A well-managed forest can provide permanent income and environmental protection.

As numerous careful studies have shown, for example, savings rates rise sharply with permanent income.

Last Friday he suggested he would consider introducing permanent income tax cuts.

A measure of wealth, lifetime income, or permanent income is required.

This way that stone represents a permanent income.

Or perhaps more sophisticated methods are applied along the lines suggested by Friedman's permanent income hypothesis.

Another problem is that people consume windfall income at almost the same rate as permanent income.

Friedman suggested that permanent income (Y p ) may provide an acceptable proxy variable.

"You can't spend a fortuitous bonanza the way you can permanent income."

Green showed that the allocation was related to Milton Friedman's permanent income theory.

This work contended that rational consumers would spend a proportional amount of what they perceived to be their permanent income.

It can be calculated simply by subtracting the measured income and the permanent income.

There was no permanent income or salary.

Transitory income is the difference between the measured income and the permanent income.

Strangely, few barns had been converted into craft or light industry centres, the rent on which would provide a permanent income for the farmer.

Permanent income is determined by a consumer's assets; both physical (shares, bonds, property) and human (education and experience).

Many housing economists use permanent income rather than annual income because of the high cost of purchasing real estate.

There is a corollary to the permanent income hypothesis named the permanent production hypothesis.

Both forms of the permanent income hypothesis challenged the Keynesian view that short-term stabilization policies like tax cuts can stimulate the economy.

Changing measured income and its relation to consumption over time might be modeled accordingly, such as in the permanent income hypothesis.

Friedman, then, has succeeded in introducing wealth into the consumption function, as the source of permanent income upon which consumption depends.

I was talking about the permanent income hypothesis; Lucas was talking about rational expectations.

See Permanent income hypothesis.

Friedman's Permanent Income Hypothesis are one of the models which seeks to explain this apparent contradiction.