Abstract
The theoretical economic framework for consumption, saving and indebtedness decisions is developed within the Life Cycle theory, proposed by Modigliani and Brumberg in 1954, and the Permanent Income Hypothesis, developed by Friedman in 1957.
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© 2011 Daniela Vandone
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Vandone, D. (2011). Household Behaviour and Debt Demand. In: Lucarelli, C., Brighetti, G. (eds) Risk Tolerance in Financial Decision Making. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230303829_3
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DOI: https://doi.org/10.1057/9780230303829_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-32801-7
Online ISBN: 978-0-230-30382-9
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