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We follow Fuhrer (2000) in estimating via Maximum Likelihood a log-linear consumption function on UK data. In doing so we consider various habit formation assumptions. We show that a model of purely external habits as in Fuhrer (2000) fits the UK data remarkably well, and possibly in a superior...
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consider preference structures of habit formation and satiation. We then empirically measure the response of audiences to … radio stations. On the other hand, critics display the effect of satiation with a median deviation from the reference levels …
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