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Understanding Consumption$
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Angus Deaton

Print publication date: 1992

Print ISBN-13: 9780198288244

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198288247.001.0001

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Consumption, Growth, and Interest

Consumption, Growth, and Interest

Chapter:
(p.44) Chapter 2 Consumption, Growth, and Interest
Source:
Understanding Consumption
Author(s):

Angus Deaton (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198288247.003.0002

Presents both theoretical and empirical evidence for the claim that growth in earnings generates higher saving (the growth‐to‐saving hypothesis). It also presents a number of theoretical and empirical models aimed at explaining the connection between interest rates and intertemporal substitution.

Keywords:   growth‐to‐savings, interest rates, intertemporal substitution

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