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Understanding Consumption - Oxford Scholarship Online
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Understanding Consumption

Angus Deaton


Presents a comprehensive introduction to the study of consumption and saving using theoretical models based on standard microeconomic foundations as well as reviewing the substantial empirical literature on the subject. A number of related topics such as the growth‐to‐saving hypothesis, the impact of interest rates on saving, risk sharing, aggregation, and information are also covered. One main focus of the book is the debate on the permanent income hypothesis and the excess sensitivity of consumption with respect to income. The importance of precautionary saving and liquidity constraints in e ... More

Keywords: aggregation, consumption, excess sensitivity, growth‐to‐savings, interest rates, liquidity constraints, permanent income, precautionary saving, risk‐sharing, saving

Bibliographic Information

Print publication date: 1992 Print ISBN-13: 9780198288244
Published to Oxford Scholarship Online: November 2003 DOI:10.1093/0198288247.001.0001


Affiliations are at time of print publication.

Angus Deaton, author
Princeton University
Author Webpage