caa a22 4500 467896062 CHVBK 20180406152804.0 cr unu---uuuuu 170328e20060901xx s 000 0 eng 10.1007/s00181-005-0035-4 doi (NATIONALLICENCE)springer-10.1007/s00181-005-0035-4 Testing the permanent-income hypothesis: new evidence from West-German states ( Länder ) [Elektronische Daten] [Joseph DeJuan, John Seater, Tony Wirjanto] This paper investigates whether time-series data from 11 West-German states (Länder) provide evidence in accord with the implication of the permanent-income hypothesis (PIH) for the stochastic relationship between consumption and income innovations. The empirical results do not support this hypothesis, in the sense that the response of consumption to income innovations is found to be much weaker than is predicted by the PIH. Moreover, for each individual state as well as for Germany as a whole, the response was found to be asymmetric, being stronger for negative than positive income innovations. This evidence of asymmetry is consistent with a model in which consumers are liquidity constrained. Springer-Verlag, 2006 Consumption nationallicence Permanent income nationallicence West Germany nationallicence DeJuan Joseph Department of Economics, University of Waterloo, Waterloo, N2L-3G1, Ontario, Canada aut Seater John Department of Economics, North Carolina State University, 27695, Raleigh, NC, USA aut Wirjanto Tony Department of Economics, University of Waterloo, Waterloo, N2L-3G1, Ontario, Canada aut Empirical Economics Physica-Verlag 31/3(2006-09-01), 613-629 0377-7332 31:3<613 2006 31 181 https://doi.org/10.1007/s00181-005-0035-4 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s00181-005-0035-4 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- DeJuan Joseph Department of Economics, University of Waterloo, Waterloo, N2L-3G1, Ontario, Canada aut NATIONALLICENCE 700 1- Seater John Department of Economics, North Carolina State University, 27695, Raleigh, NC, USA aut NATIONALLICENCE 700 1- Wirjanto Tony Department of Economics, University of Waterloo, Waterloo, N2L-3G1, Ontario, Canada aut NATIONALLICENCE 773 0- Empirical Economics Physica-Verlag 31/3(2006-09-01), 613-629 0377-7332 31:3<613 2006 31 181 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer