Effect of Income Changes on the Rate of Saving
During the past twelve years most of the theoretical discussions of the problem concerned long-run effects of income changes which are not considered in this paper. The Keynesian thesis about the short-run relationship between changes in income and saving appears to have been accepted by most students.2 Empirical evidence for the validity of the short-run relationship may be sought, and was usually sought in the past, on the aggregative level, by comparing year-to-year changes in national income, aggregate consumption, and saving. The same relationship that prevails between aggregates may also be found, however, as expressly stated by Keynes, between changes in income and consumption of individual income receivers (or groups of income receivers). It is the latter problem that will be raised here: do recent studies of the financial behavior of families shed light on the relation
- DOI
- 10.2307/1927856
- Volume
- 31 (2)
- Pages
- 95
- Export
- BibTeX
- Sources
- openalex crossref