Preference shifts and the change of consumption composition

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 125
Issue: 1
Pages: 14-17

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

While most of the literature explaining the change in consumption composition has focused on the role of relative prices and non-homothetic preferences, this paper examines the importance of preference shifts. I introduce dynamics in preferences and find that they play a relevant role and that their exclusion worsens model performance at least as much as the exclusion of allowing non-homothetic preferences.

Technical Details

RePEc Handle
repec:eee:ecolet:v:125:y:2014:i:1:p:14-17
Journal Field
General
Author Count
1
Added to Database
2026-01-24