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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

(p.44) Chapter 2 Consumption, Growth, and Interest
Understanding Consumption

Angus Deaton (Contributor Webpage)

Oxford University Press

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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