| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059367 | Economics Letters | 2014 | 4 Pages |
Abstract
While most of the literature explaining the change in consumption composition has focused on the role of relative prices and non-homothetic preferences, this paper examines the importance of preference shifts. I introduce dynamics in preferences and find that they play a relevant role and that their exclusion worsens model performance at least as much as the exclusion of allowing non-homothetic preferences.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
William Addessi,