Wednesday, February 06, 2013

NBA Great Allen Iverson Rejects the Permanent Income Hypothesis

Allen Iverson's consumption profile might puzzle Milton Friedman.

UPDATE:  I could be wrong.  Here is a direct quote from the Friedman article.

"Yet from another point of view, the assumption seems highly
implausible. Will not a man who receives an unexpected windfall use
at least some part of it in "riotous living," i.e. in consumption
expenditures? Would he be likely to add the whole of it to his wealth?"  (see page 28).

Clearly, Milton Friedman was so smart that he anticipated back in 1957 how Allen Iverson (born in 1975) would live his life!