Meanings
- economicsA theory attempting to describe how agents spread consumption over their lifetimes, supposing that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years, which is seen as the driver of change.
Synonyms: PIH
Synonyms & antonyms
proper nounA theory attempting to describe how agents spread consumption over their lifetimes, supposing that a person's consumption at a point in time is determined not just by their current income but also by their expected income in future years, which is seen as the driver of change.
Cite this entry
permanent income hypothesis. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/permanent%20income%20hypothesis
“permanent income hypothesis.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/permanent%20income%20hypothesis. Accessed November 5, 2026.
WatkinsX Dictionary, s.v. “permanent income hypothesis,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/permanent%20income%20hypothesis.
Source: permanent income hypothesis on Wiktionary, CC BY-SA 4.0.