Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
965780 | Journal of Macroeconomics | 2011 | 11 Pages |
Abstract
⺠This paper empirically investigates household consumption within a model that allows for habit formation or durability. ⺠The raw data consists of checking account transactions of individual households over a four month period. ⺠Samples of panel data are constructed for individual households with weekly, biweekly, and semi-monthly pay-periods. ⺠Empirical results point to “rule of thumb” consumption under liquidity constraints. ⺠These findings hold for households with younger heads, older heads, low-incomes, and high-incomes.
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Authors
Marc Anthony Fusaro, Donald H. Dutkowsky,