A Tentative Test of Permanent Income Hypothesis
Implications to Poverty in Kenya
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The book presents, in some detail, the application of the log linear and the ordered logit models. The results from the models are thorughly discussed to make them interesting to the experts and very useful for people learning the application of such models. In addition, a thorough discussion of relevant consumption theories is undertaken, carefully linking the discussion to poverty. All these set up a foundation for the test of the postulation that consumption expendutures are less tied to fluctuations in income, the latter being a common phenomenon in most developing countries. The hypothesi...
The book presents, in some detail, the application of the log linear and the ordered logit models. The results from the models are thorughly discussed to make them interesting to the experts and very useful for people learning the application of such models. In addition, a thorough discussion of relevant consumption theories is undertaken, carefully linking the discussion to poverty. All these set up a foundation for the test of the postulation that consumption expendutures are less tied to fluctuations in income, the latter being a common phenomenon in most developing countries. The hypothesis is rejected on the basis of the findings.
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