HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA
Thispaper isfocused on the test of Hall Permanent Hypothesis. Hall hypothesizes that economic agents have perfect information on their life time income. Since economic agents have perfect information on their life time income, they tend to hold their inter-temporal consumption to be equal. There are...
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| Format: | Article |
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[Yogyakarta] : Universitas Gadjah Mada
2010
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| _version_ | 1826033112488869888 |
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| author | Perpustakaan UGM, i-lib |
| author_facet | Perpustakaan UGM, i-lib |
| author_sort | Perpustakaan UGM, i-lib |
| collection | UGM |
| description | Thispaper isfocused on the test of Hall Permanent Hypothesis. Hall hypothesizes that
economic agents have perfect information on their life time income. Since economic agents
have perfect information on their life time income, they tend to hold their inter-temporal
consumption to be equal. There are three ways to test the Hall hypothesis. The three ways
are Dickey Fuller, Augmented Dickey Fuller, Cambell and Mankiw tests. The results are
inconsistent each others. Thefinding tends to support that the interest rate transmission
mechanismfor inter-temporal consumption is not working in Indonesia. The interest rate
in Indonesia tends to be higher than of the neighboring countries. The interest rate in
Indonesia tends to be high because of the high inflation rate, and inefficient banking
practice. It is interesting to plan further research on staggering high inflation and
inefficient bankingpractice in Indonesia.
Keywords: Hall incomepermanent hypothesis, inflation, Indonesia. |
| first_indexed | 2024-03-13T19:05:01Z |
| format | Article |
| id | oai:generic.eprints.org:27852 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T19:05:01Z |
| publishDate | 2010 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:278522014-06-18T00:23:57Z https://repository.ugm.ac.id/27852/ HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA Perpustakaan UGM, i-lib Jurnal i-lib UGM Thispaper isfocused on the test of Hall Permanent Hypothesis. Hall hypothesizes that economic agents have perfect information on their life time income. Since economic agents have perfect information on their life time income, they tend to hold their inter-temporal consumption to be equal. There are three ways to test the Hall hypothesis. The three ways are Dickey Fuller, Augmented Dickey Fuller, Cambell and Mankiw tests. The results are inconsistent each others. Thefinding tends to support that the interest rate transmission mechanismfor inter-temporal consumption is not working in Indonesia. The interest rate in Indonesia tends to be higher than of the neighboring countries. The interest rate in Indonesia tends to be high because of the high inflation rate, and inefficient banking practice. It is interesting to plan further research on staggering high inflation and inefficient bankingpractice in Indonesia. Keywords: Hall incomepermanent hypothesis, inflation, Indonesia. [Yogyakarta] : Universitas Gadjah Mada 2010 Article NonPeerReviewed Perpustakaan UGM, i-lib (2010) HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA. Jurnal i-lib UGM. http://i-lib.ugm.ac.id/jurnal/download.php?dataId=10915 |
| spellingShingle | Jurnal i-lib UGM Perpustakaan UGM, i-lib HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title | HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title_full | HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title_fullStr | HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title_full_unstemmed | HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title_short | HYPOTHESIS TESTS ON HALL PERMANENT INCOME (HPI): THE CASE OF INDONESIA |
| title_sort | hypothesis tests on hall permanent income hpi the case of indonesia |
| topic | Jurnal i-lib UGM |
| work_keys_str_mv | AT perpustakaanugmilib hypothesistestsonhallpermanentincomehpithecaseofindonesia |