BAR-ILAN, Avner; BLINDER, Alan S. - In: Annales d'Economie et de Statistique (1988) 9, pp. 71-91
This paper presents an extension of the life cycle permanent-income model of consumption to the case of a durable good whose purchase involves limpy transactions costs. By integrating the advancement/postponement decision in the individual's analysis, the implications of the model are different...