Life Cycle Hypothesis
Life cycle hypothesis states that a particular consumer always plans to smooth out his or her consumption over his or her lifetime subject to lifetime income or resources. In other words, The saving to consumption decision of a consumer unit reflects more or less conscious attempt to the acieve the preferred distribution of consumption over his or her lifetime subject to lifetime income.
Meaning and Assumptions
Reconciliation of Short-run and long-run consumption function
Our articles on Economics
Other online resources
Agarwal, Vinita. (2010). Macroeconomics: Theory and Policy. New Delhi: Pearson India
Vaish. MC. (2010). Macroeconomic Theory. (14th Ed.). New Delhi: Vikas Publishing House Pvt. Ltd.