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| Koichiro Iwamoto |
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| ''Habit formation in household consumption: evidence from Japanese panel data'' |
| ( 2013, Vol. 33 No.1 ) |
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| Habit formation in consumption has important implications for the effects of
macroeconomic policies. Using micro data from the Japanese Panel Survey of
Consumers (JPSC) for the period 1998-2004, an Euler equation à la Dynan (2000)
allowing for time-nonseparablity in consumer preferences is estimated. In contrast to
previous, macro data-based studies on consumption in Japan, the estimates yield no
evidence of habit formation and appear consistent with durability in consumption. |
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| Keywords: household consumption, habit formation, panel data |
JEL: D1 - Household Behavior: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) |
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| Manuscript Received : May 13 2011 | | Manuscript Accepted : Feb 08 2013 |
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