Consumption and Habits : Evidence From Panel Data  

Oleh:

Carrasco, Raquel ; Labeaga, Jose M. ; Lopez-Salido, J. David

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 115 no. 500 (Jan. 2005), page 144-165.
Topik: consumption; consumption and habits; panel data
Fulltext: 144.pdf (267.46KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.16 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

The purpose of this paper is to test for the presence of habit formation in consumption decisions using household panel data. We apply the test proposed by to a Spanish panel data set in which households are observed for up to eight consecutive quarters. This temporal dimension is crucial, because it allows us to take into account time invariant unobserved heterogeneity across households ('fixed effects') and, therefore, to investigate whether the relationship between current and past consumption reflects habits or heterogeneity. Our results confirm the importance of accounting for fixed effects when analysing intertemporal consumption decisions allowing for time non - separabilities.

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