consumptiongrowthinaboomingeconomy taiwan 1976 96 david j mckenzie 8 october 2000 abstract consumption and income have both grown rapidly in over the past forty years with younger birth cohorts experiencing faster growth long upward trend presents a strong challenge to smoothing predictions of permanent hypothe sis we investigate extent which theory can account for this an environment where large majority households high savings rates household survey data from are used estimate dynamic pseudo panel models inter cohort heterogeneity evaluate impacts on migration mortality house hold composition liquidity constraints unanticipated aggregate shocks hyperbolic discounting habit formation precautionary saving tai wanese is found result levels pru dence attributed their greater participation industries more earnings risk motive has important implications e ects economic population aging inequality paper represents part author s ph d dissertation at yale university spe cial thanks go christopher udry peter phillips
