Consumption and saving with habit formation and durability. (Q1605268)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Consumption and saving with habit formation and durability. |
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Consumption and saving with habit formation and durability. (English)
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15 July 2002
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This paper develops a model of precautionary saving with habit formation and durability. Durability offsets the effects of habit formation on both consumption growth and the precautionary premium. Empirical tests of habit formation and durability on consumption growth might exploit their parallel effects on the precautionary premium.
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Habit formation
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Durability
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Consumption
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Saving
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