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Habit Formation, Demand and Growth through Product Innovation
Garcia-Torres, M. Abraham - United Nations University-Maastricht Economic Research … - 2009
Growth theory has mainly focused on process innovation, either through an increase in quality of the product or a … reduction on the cost. The main contributions in growth theory that includes product innovation has been done in the Dixit and … the capacity to satisfy consumers’ needs. Growth in this model is defined as the growth of the final value added. …
Persistent link: https://www.econbiz.de/10010712314
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Habit Formation, Demand and Growth through Product Innovation
Garcia-Torres, M. Abraham - United Nations University, Maastricht Economic and … - 2009
Growth theory has mainly focused on process innovation, either through an increase in quality of the product or a … reduction on the cost. The main contributions in growth theory that includes product innovation has been done in the Dixit and … the capacity to satisfy consumers’ needs. Growth in this model is defined as the growth of the final value added. …
Persistent link: https://www.econbiz.de/10005209850
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Credit card utilization and consumption over the life cycle and business cycle
Fulford, Scott L.; Schuh, Scott - 2017
The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20-40, for example, credit card limits grow by more than 700...
Persistent link: https://www.econbiz.de/10012059588
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Stock Market Returns and Consumption
Di Maggio, Marco; Kermani, Amir; Majlesi, Kaveh - 2018
This paper employs Swedish data on households' stock holdings to investigate how consumption responds to changes in stock market returns. We instrument the actual capital gains and dividend payments with past portfolio weights. Unrealized capital gains lead to a marginal propensity to consume...
Persistent link: https://www.econbiz.de/10011816629
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House price rises and borrowing to invest
Crossley, Thomas; Levell, Peter; Low, Hamish - 2020
Household borrowing and spending rise with house prices, particularly for leveraged households, but household spending is not consumption. We propose an alternative borrow-to-invest channel by which house price gains affect household spending on residential investment. We show that rational,...
Persistent link: https://www.econbiz.de/10012265332
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Does the selfish life-cycle model apply in the case of Japan?
Horioka, Charles - 2020
In this paper, we first provide a brief exposition of the simplest version of the selfish life cycle model or hypothesis, which is undoubtedly the most widely used theoretical model of household behavior in economics, and then survey the literature on household saving behavior in Japan (with...
Persistent link: https://www.econbiz.de/10012430036
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Consumption Response to Credit Expansions: Evidence from Experimental Assignment of 45,307 Credit Lines
Aydın, Deniz - 2021
I design a large-scale field experiment that constructs a randomized credit limit extension isolating selection, anticipation, wealth, and interest rate effects and study the impulse responses on spending, contract choice, and balance sheets. Participants borrow to spend 11 cents on the dollar...
Persistent link: https://www.econbiz.de/10012436165
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Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey
Horioka, Charles - 2020
The selfish life-cycle model or hypothesis is, together with the dynasty or altruism model, the most widely used theoretical model of household behavior in economics, but does this model apply in the case of a country like Japan, which is said to have closer family ties than other countries? In...
Persistent link: https://www.econbiz.de/10012543994
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The mortgage cash flow channel of monetary policy transmission: A tale of two countries
Cooper, Daniel; Garga, Vaishali; Luengo-Prado, Maria José - 2021
We study the mortgage cash flow channel of monetary policy transmission under fixed-rate mortgage (FRM) versus adjustable-rate mortgage (ARM) regimes by comparing the United States with primarily long-term FRMs and Spain with primarily ARMs that automatically reset annually. We find a robust...
Persistent link: https://www.econbiz.de/10012882640
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Accounting for Limited Commitment between Spouses When Estimating Labor-Supply Elasticities
Bredemeier, Christian; Gravert, Jan; Juessen, Falko - 2021
The Frisch elasticity of labor supply can be estimated by regressing hours worked on the hourly wage rate, controlling for consumption of the individual worker. However, most household panel surveys contain consumption information only at the household level. We show that proxying individual...
Persistent link: https://www.econbiz.de/10012597372