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