James Tobin
James Tobin (March 5, 1918 – March 11, 2002) was an American economist who served on the Council of Economic Advisers and the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He developed the ideas of Keynesian economics, and advocated government intervention to stabilize output and avoid recessions. His academic work included pioneering contributions to the study of investment, monetary and fiscal policy and financial markets. He also proposed an econometric model for censored endogenous variables, the well-known "Tobit model". Tobin received the Nobel Memorial Prize in Economic Sciences in 1981.
Absolute income hypothesis
In Economics, the Absolute Income Hypothesis concerns how a consumer divides his disposable income between consumption and saving It is part of the theory of consumption proposed by English economist John Maynard Keynes (1883–1946). The hypothesis has been refined extensively during the 1960s and 1970s, notably by American economist James Tobin (1918–2002).