Showing 1 - 10 of 158
Individuals' preferences underlying most economic behavior are likely to display substantial heterogeneity. This paper reports on direct measures of preference parameters relating to risk tolerance, time preference, and intertemporal substitution. These experimental measures are based on survey...
Persistent link: https://www.econbiz.de/10013210685
In this note I demonstrate the previously overlooked fact that if the AIDS aggregate demand model is constructed as the aggregation of individual consumer demands, then the error structure for any individual equation is necessarily heteroskedastic unless the distribution of income is constant...
Persistent link: https://www.econbiz.de/10014157533
Altruism has the well-known neutrality implication that the family's demand for commodities is invariant to the division of resources within the family. We test this by estimating Engel curves on a cross-section of Japanese extended families forming two- generation households. We find that the...
Persistent link: https://www.econbiz.de/10014158467
This paper tests the rational expectations lifecycle model of consumption against (1) a simple Keynesian model and (ii) the rational expectations lifecycle model with imperfect capital markets. The tests are based upon the relative responsiveness of consumption to income changes which can be...
Persistent link: https://www.econbiz.de/10014104379
-Permanent Income model there is no evidence in the aggregate data against the model. The estimates of the parameters of agents' utility …
Persistent link: https://www.econbiz.de/10014105334
The purpose of this paper is to identify conditions under which hedonic price indexes provide an exact measure of consumer welfare, so that the welfare effects of quality change can be inferred. Our results are quite positive in providing a rational for existing practices, though the conditions...
Persistent link: https://www.econbiz.de/10013219985
The issue of asset accumulation and decumulation is central to the life cycle theory of consumer behavior and to many policy questions. One of the main implications of the life cycle model is that assets are decumulated in the last part of life. Most empirical studies in this area use...
Persistent link: https://www.econbiz.de/10013220798
Using pseudo-panel data, we estimate the structuralparameters of a life--cycle consumption model with discrete laborsupply choice. A focus of our analysis is the abrupt drop inconsumption upon retirement for a typical household. Theliterature sometimes refers to the drop, which in the...
Persistent link: https://www.econbiz.de/10013220962
Does a higher real interest rate induce significant postponement of consumption? According to the theory developed here, this question can be answered by studying the relation between the rate of growth of consumption and expected real interest rates. In postwar data for the United States,...
Persistent link: https://www.econbiz.de/10013222936
"memorable" goods. A good is memorable if a consumer can draw current utility from its past consumption experience through memory … memorable goods consumption may also impact future utility through the accumulation process of the stock of memory. In our model …
Persistent link: https://www.econbiz.de/10013222945