| Autor: |
 Frans Spinnewyn |
| Rok vydání: |
1981 |
| Předmět: |
|
| Zdroj: |
European Economic Review. 15:91-109 |
| ISSN: |
0014-2921 |
| DOI: |
10.1016/0014-2921(81)90068-4 |
| Popis: |
This paper discusses consumer demand under rational habit formation. If consumer tastes change endogenously through habit stocks depending on past consumption, the rational consumer will make allowance of the future habit forming effects of current consumption. A model with rational habit formation is made formally equivalent to an intertemporal consumer model without habit formation by redefining the cost of consumption and wealth. The cost of consumption is obtained by adding the cost of future induced consumption to the rental price of the commodity. The extended wealth concept is obtained by subtracting the cost of the initial stocks of habits and the cost of future physically necessary consumption from wealth. The paper also investigates the implication of rational habit formation for constructing one period cost of living indices. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
|
