permanent income hypothesis

From Wiktionary, the free dictionary
Jump to navigation Jump to search

English[edit]

Proper noun[edit]

the permanent income hypothesis

  1. (economics) A theory attempting to describe how agents spread consumption over their lifetimes, supposing that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years, which is seen as the driver of change.
    Synonym: PIH