A Theory of the Consumption Function.

A MASTERPIECE OF MODERN ECONOMETRICS.

First edition, first printing. 8vo (235 x 160mm). xvi, 243, [1] pp. Original blue cloth, spine lettered in gilt, dust jacket (slightest hint of spotting to fore edge, otherwise internally clean and unmarked; jacket with some trivial shelf wear to tips of spine and corners, spine panel only slightly toned, a near fine copy). Princeton, Princeton University Press.

A masterpiece of modern econometrics and one of the most important methodological statements of twentieth century economics. 'For many academic economists, A Theory of the Consumption Function is Friedman's greatest work. Friedman showed that the Keynesian concept of household behaviour was fundamentally flawed, arguing that people adjusted their consumption to variations in their long-term expected ('permanent') income. As such, his theory foreshadows the approach to microfoundations that is the cornerstone of modern macroeconomics' (New Palgrave).

Stock Code: 246849