This paper examines the role of habit persistence in consumption in explaining persistent responses of inflation and output to money growth shocks. A monetary stochastic dynamic general equilibrium (DGE) model with a money-in-the-utility-function (MIU-) setup is augmented by habit formation in...

The paper presents an extended version of the consumer choice problem. Different from the standard model, prices are not fixed but arise from Walrasian interactions of total demand and a stylized supply function for each of the goods. Three different types of evolutionary algorithms are set up...

New gaps are emerging worldwide in all customs tariffs that are using the Harmonized Commodity Description and Coding System (Harmonized System Convention) following the technical revision as of 1 January 2007. Thirty-four headings are not in use for the next four to five years. This...

In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...

This paper describes a dynamic system for the interrelationships between happiness and health that considers three main attitudes to life: α, β, and γ for Aristotelian, Epicurean, and Stoic, respectively. All variables that have been shown by empirical and theoretical studies to affect...

According to the Terror Management Theory, the fear of death may induce anxiety and threaten individual self-esteem. To remove this fear, individuals need to obtain and sustain self-esteem, for example by competing in rank order tournaments, or by focusing on status seeking. Within an...

In this paper we compare two policy instruments that can be adopted to curb carbon emissions. The first is a conventional pollution tax. The second is an environmental campaign aiming to influence consumers to switch to a green good. We consider two different scenarios. When consumers are...

Policy interventions aimed at affecting a specific behavior may also indirectly affect individual choices in other domains. In this paper we study the direct effect of tobacco excise taxes and smoking bans on smoking behavior, and the indirect effect on eating behavior and body weight. Using...

We propose a model of environmental overcompliance in a duopoly setting where consumers are environmentally concerned and may patronise the product they buy, firms set their green investment to abate the impact of productivity on pollution and a government sets the environmental standard with...

In this paper, we examine the determinants of the choice of payment instrument for low-value day-to-day transactions. Using Japanese household data from 2007 to 2014, we find that three payment instruments, namely, cash, electronic money, and credit cards, comprise the major payment choices for...