Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060788 | Economics Letters | 2011 | 4 Pages |
Abstract
⺠We consider a utility function where habits and consumption enter multiplicatively. ⺠This multiplicative form has some undesirable properties if habits form additively. ⺠A geometric habit formation function can resolve these shortcomings.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Luisa Corrado, Sean Holly,