The link with subjective well-being has not been addressed in the literature of sustainability, the latter defined by social well-being improvement. We explicitly derive genuine savings as an indicator of sustainability inclusive of one form of subjective well-being, namely habit formation,...

A two-period duopoly model of trade with habit formation displays a “pre-entry pro-competitive effect” and the standard pro-competitive effect once trade is effective. Both effects are driven in a different way by transport cost. A trade liberalization affects ambiguously welfare.

We analyze individual preferences over infinite horizon consumption choices. Our axioms provide the foundation for a recursive representation of the utility function that contains as particular cases the classical Koopmans representation (Koopmans (1960)) as well as the habit formation...

This paper investigates consumption behavior within an intertemporal optimization model of the representative household. Our dataset consists of deposits and withdrawals from individual household checking accounts that received paychecks by direct deposit. We construct samples of panel data for...

The primary and secondary effects of various spatial and transportation policies can be evaluated with models of activity–travel behavior. Whereas existing activity-based models of travel demand simulate a typical day, dynamic models simulate behavioral response to endogenous or exogenous...

Models of shrouding predict that firms lack incentives to compete on add-on prices. Working with a large Turkish bank to test SMS direct marketing promotions to 108,000 existing checking account holders, we find that messages promoting a large discount on the overdraft interest rate reduce...

Models of shrouding predict that firms lack incentives to compete on add-on prices. Working with a large Turkish bank to test SMS direct marketing promotions to 108,000 existing checking account holders, we find that messages promoting a large discount on the overdraft interest rate reduce...

This paper focuses on the role of habit formation in individual preferences over consumption and saving.We closely relate to Alessie and Lusardi's (1997) model as we estimate a model which is based on their closed-form solution, where saving is expressed as a function of lagged saving and other...

We develop and estimate several variants of consumption-based capital asset pricing models (CCAPMs) and compare their capacity in explaining the stock price dynamics of China. We conclude that adding housing to CCAPM and habit formation models yields no significant benefit in predicting stock...