I’ll Never Forget My First Cigarette: a Revealed Preference Analysis of the “habits as Durables” Model

B-Tier
Journal: International Economic Review
Year: 2013
Volume: 54
Issue: 2
Pages: 717-738

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

We provide a revealed preference analysis of the “habits as durables” model. This approach avoids the need to impose a functional form on the underlying utility function. We show that our characterization is testable by means of linear programming methods, and we demonstrate its practical usefulness by means of an application to cigarette consumption using a Spanish household consumption data set. We find that the “habits as durables” model has better empirical fit in terms of predictive success compared to the “short memory habits” and life cycle models.

Technical Details

RePEc Handle
repec:wly:iecrev:v:54:y:2013:i:2:p:717-738
Journal Field
General
Author Count
2
Added to Database
2026-01-25