Working paper icon

Working paper

Habits, Rationality and Myopia in the Life-Cycle Consumption Function.

Abstract:

This paper investigates the role of habits in the consumption function. Two types of habits are considered: rational and myopic, these being distinctions which have long been made in the literature on systems of demand equations. In both cases past consumption affects current preferences, thus breaking the intertemporal separability of preferences often assumed by economists. If habits are rational, consumers are aware of the effect of their current consumption decisions on their future margi...

Expand abstract

Actions


Authors


John Muellbauer More by this author
Volume:
112
Publication date:
1986
URN:
uuid:8733237c-09c9-4ee6-aaa1-04a4401090ba
Local pid:
oai:economics.ouls.ox.ac.uk:11726
Language:
English

Terms of use


Metrics



If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP