Suchergebnisse

The permanent income/life cycle hypothesis is tested using Australian data for periods covering the regulated and deregulated financial systems. The hypothesis is rejected for the entire sample period. Further investigation reveals that the rejection is confined to the period in which the financial system was regulated. The evidence points to liquidity constraints as being the cause of this rejection although the existence of myopic consumers may also be a possibility.

Abstract
This article uses archival sources to reconstruct an alternate history of Milton Friedman's A Theory of the Consumption Function, spotlighting the contributions of his collaborators Margaret Reid, Dorothy Brady, and Rose Friedman. Although Milton Friedman offered public credit to his wife and their two close friends, none received formal recognition or reward for their contribution to the permanent income hypothesis. The article documents this hypothesis as an example in professional economics of the well-known "Matilda effect," in which women's intellectual contributions are systemically devalued, while arguing it is important to distinguish between formal and informal credit. Further, the article connects the lower status of women's consumption economics to broader shifts in the economics discipline across the twentieth century.