Model
Digital Document
Publisher
Florida Atlantic University
Description
This thesis reviews the major literature associated
with the Life Cycle Hypothesis of Consumption and Saving as
formulated by Franco Modigliani, Richard Brumberg and Albert
Ando. The initial microeconomic formulation of the theoretical
model of individual consumer behavior in terms of life
time planning was examined under conditions of both stability
and growth. Next, the attempts to seek empirical support for
the propositions of the theory in cross-section survey data and
the tests of the aggregate implications of the theory were
examined. It was concluded that within the current conceptual
framework of macroeconomics the theory has a fairly
high level of explanatory force, and should further future
inquiry.
with the Life Cycle Hypothesis of Consumption and Saving as
formulated by Franco Modigliani, Richard Brumberg and Albert
Ando. The initial microeconomic formulation of the theoretical
model of individual consumer behavior in terms of life
time planning was examined under conditions of both stability
and growth. Next, the attempts to seek empirical support for
the propositions of the theory in cross-section survey data and
the tests of the aggregate implications of the theory were
examined. It was concluded that within the current conceptual
framework of macroeconomics the theory has a fairly
high level of explanatory force, and should further future
inquiry.
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