Carrasco, Raquel; Azcona, Labeaga; Maria, J; … - C.E.P.R. Discussion Papers - 2002
The purpose of this Paper is to test for the presence of habit formation in consumption decisions using household panel data. We use the test proposed by Meghir and Weber (1996) and estimate the within-period marginal rate of substitution between commodities, which is robust to the presence of...