Multiplicative habit formation and consumption: A note

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 113
Issue: 2
Pages: 116-119

Authors (2)

Corrado, Luisa (not in RePEc) Holly, Sean (University of Cambridge)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

A multiplicative form of the habit term in the utility function has some undesirable properties if the habit function is itself still additive (Wendner, 2003). A geometric form for the way the stock of habit accumulates can resolve these shortcomings.

Technical Details

RePEc Handle
repec:eee:ecolet:v:113:y:2011:i:2:p:116-119
Journal Field
General
Author Count
2
Added to Database
2026-01-25