Mansoorian, Arman; Neaime, Simon - In: Open Economies Review 11 (2000) 3, pp. 195-204
Some recent empirical findings are used to motivate employing a model in which consumption exhibits durability, and … account. Durability leads to adjacent substitutability in consumption, while habits are assumed to lead to adjacent … complementarity. If durability effects are dominant in the short run, and habit effects in the long run, then tariffs will lead to a …