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| Fábio A. R. Gomes |
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| ''Consumption function: nondurable and durable goods'' |
| ( 2022, Vol. 42 No.2 ) |
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| Modeling the consumption of nondurable and durable goods separately is equivalent to assuming that consumers` resources exclusively finance one category of goods. To overcome this problem, I modelled these decisions jointly. Not by chance, the new consumption functions for nondurable and durable goods depend not only on consumers` resources, but also on the lagged stock of durable goods. |
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| Keywords: Consumption function, nondurable goods, durable goods, consumption persistence |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
D1 - Household Behavior: General |
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| Manuscript Received : Mar 10 2021 | | Manuscript Accepted : Jun 30 2022 |
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