In 1998, Rodepeter and Winter studied the application of this theory in Germany. The man often given credit for founding this theory published papers on it with his student Richard Brumberg, and with Japanese economist Albert Ando at the University of Pennsylvania. Its basic characteristics were ini
In 1998, Rodepeter and Winter studied the application of this theory in Germany. The man often given credit for founding this theory published papers on it with his student Richard Brumberg, and with Japanese economist Albert Ando at the University of Pennsylvania. Its basic characteristics were initially discovered by English economist Roy Harrod, who first developed its notion of a "hump-shaped profile" in 1948, using studies of Irving Fisher. Harrod's work was then extended by Franco Modigliani, who factored in uncertainty and used intertemporal choice models for consumption. This model predicts that households prefer perfectly smooth consumption profiles, independent of the timing of the money entering the household. FTP, name this microeconomic hypothesis which posits that people save money during their middle years so that they can spend later.
In 1998, Rodepeter and Winter studied the application of this theory in Germany.
{Life-Cycle} Hypothesis (or {LCH}, or “Life-Cycle Theory”, also accept