Publication:
Consumption and habits : evidence from panel data

Thumbnail Image
Identifiers
URI: http://hdl.handle.net/10016/4923
ISSN: 0013-0133
DOI: 10.1111/j.1468-0297.2004.00963.x
Files
consumption_carrasco_JE_2005_ps.pdf (714.53 KB)
Publication date
2005
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell
Impact
Google Scholar
Export
Research Projects
Organizational Units
Journal Issue
Abstract
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 Meghir and Weber (1996)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.
Description
Keywords
Consumo, Comportamiento del consumidor, Hogares, España
Bibliographic citation
The Economic Journal, 2005, v. 115, n. 500, pp.144-165
Collections
DE - Artículos de Revistas
Economists Online