Article ID Journal Published Year Pages File Type
5062410 Economics Letters 2007 9 Pages PDF
Abstract
We consider a representative-consumer setting where the ratio (respectively difference) between current consumption and the level of habit yields utility. Money demand is well-defined in the difference-specification but not in the ratio-specification for plausible values of the parameter measuring habit.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Habit persistence in consumption and the demand for money
Authors
, ,