Business management> Notes > FINANCIAL ECONOMICS WEEK I PART 2/2: INDIVIDUAL SAVING AND INVESTMENT DECISIONS
FINANCIAL ECONOMICS WEEK I PART 2/2: INDIVIDUAL SAVING AND INVESTMENT DECISIONS
Study consumption patterns over one’s life time. A topic of microeconomics, macroeconomics, and financial economics. The latter two fields build their theories on the micro foundations. Key results: Consumers smooth their consumption over lifetime; they save when they are rich, and dissave when they are poor. Permanent income hypothesis Consumption is largely determined by permanent income, rather than transitory income. ... [Show More]Last updated: 1 year ago
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