Name: A Theory of the Consumption Function
Price: 483.00 ZAR
Availability: InStock
Author: Milton Friedman
ISBN: 9781614278122

portada A Theory of the Consumption Function

Type

Physical Book

Author

Milton Friedman

Publisher

Martino Fine Books

Language

English

Pages

258

Format

Paperback

Dimensions

23.4 x 15.6 x 1.5 cm

Weight

0.40 kg.

ISBN13

9781614278122

Synopsis "A Theory of the Consumption Function"

2015 Reprint of 1957Edition. Full Facsimile of the original edition. Not reproduced with Optical Recognition Software. In this book Friedman developed the permanent income hypothesis (PIH). As classical Keynesian consumption theory was unable to explain the constancy of savings rate in the face of rising real incomes in the United States, a number of new theories of consumer behavior emerged. In his book, Friedman posits a theory that encompasses many of the competing hypotheses at the time as special cases and presents statistical evidence in support of his theory. "Friedman described Keynes's theory of a declining propensity to consume as 'very imaginative and thoughtful.' But in "A Theory of the Consumption Function" (1957), he demonstrated that while the hypothesis seemed to make psychological sense, it was empirically false. In relating income to propensity to consume, Keynes had erred in not distinguishing between 'transitory' and 'permanent' income. In fact, consumption does not decline as incomes generally rise. Economists across the political spectrum agreed with Friedman's refutation of Keynes...."--James A. Nuechterlein, Commentary

Milton Friedman

(Author)

View Author's Page

Milton Friedman (1912-2006) was one of the most relevant contemporary economists in the development of modern liberal economic thought. His figure has been the subject of numerous studies aimed at understanding his impact on the current functioning of the global economy.

Friedman was the youngest child of a humble Jewish family from Brooklyn of Central European descent. He had to pay for his own Economics studies at Rutgers University after his father died when he was just 15 years old.

Once graduated, he moved to Chicago to work as a researcher at the University of Chicago, which would later become the beginning of an internationally significant economic school.

At 29, he was put in charge of fiscal policy at the Treasury Department with the entry of the United States into World War II. As a result, in 1953 he obtained a scholarship to study in the United Kingdom, at the University of Cambridge, where he had the opportunity to delve into the latent debate on the ideas of John Maynard Keynes.

Since then, he worked as an economist for various institutions and federal agencies, founding organizations such as the Mont Pèlerin Society alongside Friedrich Hayek, and was a professor at prestigious American universities such as Columbia or Stanford until he retired in 1977.

Throughout his career, he was politically involved in the Republican Party, becoming an economic advisor to Presidents Nixon, Reagan, George W. Bush, and Margaret Thatcher in the United Kingdom.

See less