permanent income hypothesis
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(economics) A theory attempting to describe how agents spread consumption over their lifetimes, supposing that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years, which is seen as the driver of change.
permanent income hypothesis
The permanent income hypothesis implies that households base their consumption on expected lifetime earnings, smoothing spending despite short-term income fluctuations.
The permanent income hypothesis implies that households base their consumption on expected lifetime earnings, smoothing spending despite short-term income fluctuations.
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