Talk:Intertemporal consumption

Lifetime income hypothesis

So "Lifetime income hypothesis" redirects to this page, but this page doesn't explain what the lifetime income hypothesis is. I don't have the inclination to figure out how that happened and fix it at the moment; I just thought I'd register my irritation in case someone else feels like fixing something on this page.

Kragen Javier Sitaker 05:55, 31 May 2007 (UTC)

Duesenberry's relative income hypothesis

Should be at least referenced at this page as it provides useful insights into consumption decisions. — Preceding unsigned comment added by 94.216.201.150 (talk) 09:50, 2 March 2013 (UTC)

Life-cycle Model

So is the life-cycle model the same as Permanent income hypothesis? If so should life-cycle model be linked to Permanent income hypothesis and maybe redirect there?

128.232.159.30 (talk) 19:29, 9 June 2011 (UTC)

The life-cycle model and the permanent income hypothesis were originated by two different sets of people. Milton Friedman essentially said that in making consumption decisions, people take into account not just the current period's income but the average income over a long period of time. His initial assessment was that people had something like a 5-year time horizon taken into account. Modigliani and his student Brumberg did something slightly different. They focused on how people accumulated over their life-cycle (save up when young to accumulate assets, run down those assets for income during retirement).

However, these originally two different models had a common insight of smoothing consumption across time, which now forms the standard framework for models of intertemporal consumption. In my opinion, they each deserve their separate articles but maybe better links should be madeBenuel (talk) 16:15, 19 December 2011 (UTC)