This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
American Economic Review: Vol. 90 No. 3 (June 2000)
AER Volume. 90, Issue 3 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
AER Forthcoming Articles
Full-text Article
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
AER Forthcoming Articles
Habit Formation in Consumer Preferences: Evidence from Panel Data
Article Citation
Dynan, Karen E. 2000. "Habit Formation in Consumer Preferences: Evidence from Panel Data."
American Economic Review,
90(3): 391-406.
DOI: 10.1257/aer.90.3.391
DOI: 10.1257/aer.90.3.391
Abstract
This paper tests for the presence of habit formation using household data. A simple model of habit formation implies a condition relating the strength of habits to the evolution of consumption over time. When the condition is estimated with food consumption data from the Panel Study on Income Dynamics (PSID), the results yield no evidence of habit formation at the annual frequency. This finding is robust to a number of changes in the specification. It also holds for several proxies for nondurables and services consumption created by combining PSID variables with weights estimated from Consumer Expenditure Survey data.
Article Full-Text Access
Full-text Article
Authors
Dynan, Karen E. (Federal Reserve Board)
JEL Classifications
D12: Consumer Economics: Empirical Analysis
D91: Intertemporal Consumer Choice; Life Cycle Models and Saving
E21: Macroeconomics: Consumption; Saving; Wealth
D91: Intertemporal Consumer Choice; Life Cycle Models and Saving
E21: Macroeconomics: Consumption; Saving; Wealth
