In economics, the absolute income hypothesis concerns how a consumer divides their disposable income between consumption and saving. It is part of the...

The permanent income hypothesis (PIH) is a model in the field of economics to explain the formation of consumption patterns. It suggests consumption patterns...

is also known as the absolute income hypothesis, as it only bases consumption on current income and ignores potential future income (or lack of). Criticism...

within the income distribution. The second hypothesis states that the present consumption is influenced not merely by present levels of absolute and relative...

concerned premises of the Keynes theory – Keynes' 1936 absolute income hypothesis. The hypothesis gave birth to what would become the first formal consumption...

economists like Businessweek columnist Michael Mandel. The absolute income hypothesis argues that income and demand generate consumption, and that the rise in...

Aggregate demand Absolute income hypothesis Life cycle hypothesis Measures of national income and output Permanent income hypothesis Algebraically, this...

prize. Income can be looked at in two terms: relative and absolute. John Maynard Keynes's absolute income hypothesis predicts that as income increases...

discovered the Kuznets swings, built the Kuznets curve, disproved the Absolute Income Hypothesis, Nobel Prize in Economics winner Evsei Liberman, laid the scientific...

in income or wealth initiates the transition from employment to entrepreneurship-based decreasing absolute risk aversion (DARA), constant absolute risk...

in statistics or economics there are two main measures: absolute poverty which compares income against the amount needed to meet basic personal needs,...

discovered the Kuznets swings, built the Kuznets curve, disproved the Absolute Income Hypothesis, Nobel Prize in Economics winner Vladimir Lenin, leader of the...

Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income and economic inequality among...

(also sometimes known as the catch-up effect) is the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies...

with income risk. More extensive research has confirmed the presence of a precautionary motive for saving within the permanent income hypothesis framework...

allows rural Indians to survive on an income below the absolute subsistence level in the rich world. If the money income levels are taken as given, then all...

of relative or absolute mobility. Absolute mobility measures a person’s progress in areas such as education, health, housing, income, and job opportunities...

called the relative income hypothesis. By that theory, an individual's consumption and savings rate is more dependent on their income relative to those...

William Trufant Foster. More recently, the so-called "Rajan hypothesis" posited that income inequality was at the basis of the explosion of the 2008 financial...

model. A hypothesis is proposed for the statistical relationship between the two data sets, an alternative to an idealized null hypothesis of no relationship...

economic, political, or social deprivation that are relative rather than absolute. The term is inextricably linked to the similar terms poverty and social...

has been the hypothesis that countries with similar income levels possess similar preferences for goods and services (the Lindner hypothesis), which suggests...

corner. At the top of the triangle is "absolute poverty." This refers to the percent of the population below the income poverty line. At the bottom left of...

on income dynamics in population. According to his reasoning, above a certain minimum income threshold, the probability of an individual's income increasing...

(the "tax gap") is the amount of unreported income, which is the difference between the amount of income that the tax authority requests be reported and...

secret to growth." Studies on income inequality and growth have sometimes found evidence confirming the Kuznets curve hypothesis, which states that with economic...

studies, they can be used to describe, not only the odds ratio, but also absolute risks and relative risks from prevalences (sometimes called prevalence...

increase in income and capital assets ("business growth"), and provide a steady or growing return on investment. According to Marx, absolute surplus value...

unconstrained goal of solving a complex mathematics problem like the Riemann hypothesis could attempt to turn the Earth (and in principle other celestial bodies)...

constraints. The permanent income hypothesis faces some criticism, mainly from Keynesian economists. The primary criticism of the hypothesis is based on a lack...