Assume an agent starts life with zero assets and that income is increasing over the agents life
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Assume an agent starts life with zero assets and that income is increasing over the agents life and there is no uncertainty about the agent's lifetime income. Discuss what would be the agents savings/debt profile along the life-cycle and how borrowing limits may cause the agent to deviate from the consumption level implied by the permanent income hypothesis.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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