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Bilson, J. F, “The Rational Expectations Approach to the Consumption Function”, European Economics Review, 13, 273-299, 1980.

has been cited by the following article:

Article

Empirical Test of the Rational Expectations-permanent Income Hypothesis: Abel and Mishkin’s General Approach: Evidence from Algeria

1ENSSEA ex. INPS, Kolea, Algeria

2University of Larbi Tebessi, Tebessa, Algeria

3University of Laarbi ben Mhidi, Oum elbouaghi, Algeria


International Journal of Econometrics and Financial Management. 2017, Vol. 5 No. 2, 33-36
DOI: 10.12691/ijefm-5-2-2
Copyright © 2017 Science and Education Publishing

Cite this paper:
Tarek DJEDDI, Tayeb LOUAFI, Said BRIKA. Empirical Test of the Rational Expectations-permanent Income Hypothesis: Abel and Mishkin’s General Approach: Evidence from Algeria. International Journal of Econometrics and Financial Management. 2017; 5(2):33-36. doi: 10.12691/ijefm-5-2-2.

Correspondence to: Tarek  DJEDDI, ENSSEA ex. INPS, Kolea, Algeria. Email: tarek.djeddi@gmail.com

Abstract

The purpose of this paper is to test through an empirical analysis the Rational Expectations-Permanent Income Hypothesis. To do this, we referred to the General approach of Abel and Mishkin (1983). Our econometric tests are based on annual data over the period [1985-2015] related to households in Algeria. Our results show the rejection of the general approach’s model which leads to the rejection of the Rational Expectations-Permanent Income Hypothesis. As finding, Algerian households do not form rational expectations about their future income.

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