View source for Life-cycle hypothesis

[[Life-cycle hypothesis]] is the theory of consumption that emphasizes the role of saving and borrowing as transferring resources from those times in life when income is high to those times in life when income is low, such as from working years to retirement.

==Definition==
According to [[Macroeconomics by Mankiw (7th edition)]],
:[[Life-cycle hypothesis]]. The theory of consumption that emphasizes the role of saving and borrowing as transferring resources from those times in life when income is high to those times in life when income is low, such as from working years to retirement.

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