Showing 1 - 10 of 7,554
of consumer demand theory inappropriate. A heteroskedasticity-consistent estimator of the variance-covariance matrix is …
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
Recent empirical work has found that both aggregate and micro data reject the rational expectations version of the Life Cycle-Permanent Income model of consumption. This paper examines a new possible explanation for the rejections: the treatment of seasonal fluctuations. There are substantial...
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 …
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 …
Persistent link: https://www.econbiz.de/10013222936
We propose a new classification of consumption goods into nondurable goods, durable goods and a new class which we call "memorable" goods. A good is memorable if a consumer can draw current utility from its past consumption experience through memory. We propose a novel consumption-savings model...
Persistent link: https://www.econbiz.de/10013222945
This paper develops a multiple-discrete choice model for the analysis of demand of differentiated products. Users maximize profits by choosing the number of units of each brand they purchase. Multiple-unit as well as multiple-brand purchases are allowed. These two features distinguish this model...
Persistent link: https://www.econbiz.de/10013223093