Verhelst, Benjamin; Poel, Dirk Van den - In: Empirical Economics 47 (2014) 3, pp. 959-976
Using scanner data from a large European retailer, this paper empirically assesses deep habit formation in consumption. Deep habit formation constitutes a possible source of price stickiness and helps to mimic procyclical labour and real wage dynamics that are present in macrodata. To gauge the...