蝌蚪网

This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. 蝌蚪网
  3. 蝌蚪网 Review
  4. June 2000
  5. Habit Formation in Consumer Preferences: Evidence from Panel Data

蝌蚪网 Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Habit Formation in Consumer Preferences: Evidence from Panel Data

  • Karen E. Dynan
蝌蚪网 Review
vol. 90, no. 3, June 2000
(pp. 391–406)
Download Full Text PDF

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.

Citation

Dynan, Karen, E. 2000. "Habit Formation in Consumer Preferences: Evidence from Panel Data." 蝌蚪网 Review 90 (3): 391–406. DOI: 10.1257/aer.90.3.391

JEL Classification

  • D12 Consumer Economics: Empirical Analysis
  • D15 Intertemporal Consumer Choice; Life Cycle Models and Saving
  • E21 Macroeconomics: Consumption; Saving; Wealth