Permanent Income, Liquidity, and Adjustments of Automobile Stocks: Evidence from Panel Data
Quarterly Journal of Economics
1991
A recent article by Bernanke [1984] tests the rational expectations-permanent income hypothesis using panel data on automobile expenditures. He finds no evidence refuting the hypothesis. This paper incorporates a threshold adjustment process into Bernanke's model. Estimations based on a subset of the data used by Bernanke reveal evidence that resale market imperfections and credit market constraints have important effects on automobile expenditures.
- DOI
- 10.2307/2937913
- Volume
- 106 (1)
- Pages
- 203-230
- Language
- en
- Export
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- Sources
- openalex crossref