Income hypothesis
The income hypotheses are different assumptions about consumption and saving behavior in economics . The following hypotheses must be distinguished:
Absolute income hypothesis
According to the absolute income hypothesis, which was justified by John M. Keynes , consumption only depends on income for the current period, but not on income in the following periods. Additional net income due to an increase in income is not fully included in consumption.
Relative income hypothesis
Here income is more in relation to total income. see also Relative Income Hypothesis
Permanent income hypothesis
With the permanent income hypothesis, consumer behavior is based on average permanent income. In this respect, temporary changes in income do not result in any change in consumer behavior.
Life cycle hypothesis
In the life cycle hypothesis , the expected life income is decisive for consumer behavior.
literature
- Peren, Franz W .: Income, consumption and savings of private households in the Federal Republic of Germany since 1970: Analysis using macroeconomic consumption functions. Peter Lang, Frankfurt am Main / Bern / New York 1986, p. 32
swell
- ^ Income hypotheses - Gabler Wirtschaftslexikon