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Social and Behavioral Sciences Commons

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1997

Economics

Masters Theses & Specialist Projects

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Full-Text Articles in Social and Behavioral Sciences

A Study Of The Stochastic Behavior Of Durable Goods Consumption, Alexander Lebedinsky Aug 1997

A Study Of The Stochastic Behavior Of Durable Goods Consumption, Alexander Lebedinsky

Masters Theses & Specialist Projects

The author of this thesis examines the stochastic behavior of durables consumption in the rational expectations/permanent income hypothesis framework. The testing in this paper parallels the studies conducted by other researchers, who basing their work mainly on quarterly data rejected the frictionless rational expectations/permanent income hypothesis. The distinctive feature of this thesis is that the models are examined using monthly instead of quarterly data. The results of the estimation are compared to the results based on quarterly data. The results show that estimates obtained using monthly data seem to be more consistent with the frictionless rational expectations/permanent ...