تقدير دالة الاستهلاك تحت فرضية الدخل الدائم: حالة ليبيا

Abstract

The study attempts to estimate the consumption function in the Libyan economy under the permanent income hypothesis for the period between 1970-2012 using Cogan's Adaptive Expectations Model. Empirical results have shown a limited level of support for the permanent income hypothesis. Moreover, the study showed that past consumption affects current consumption. This result is consistent with the relative income hypothesis.