Shen, Kaili; Giles, David - In: Applied Economics 38 (2006) 5, pp. 587-592
The Becker-Murphy model of rational addiction is tested with New Zealand credit card debt data. The results clearly favour the rational addiction model over the myopic, backward-looking model. The estimated short-run and long-run price elasticities are -0.58 and -2.32 respectively, and the...