Habit Formation and Dynamic Demand Functions.
Most economists would agree that past consumption patterns are an important determinant of present consumption patterns, and that one ought to distinguish between long-run and short-run demand functions. But although the distinction between long-run and short-run behavior is traditional in the theor...
| Publicado en: | Journal of Political Economy Vol. 78; no. 4; pp. 745 - 764 |
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| Formato: | Artículo |
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University of Chicago Press
Jul/Aug70
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=5054207&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 5054207 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00223808 JPE jtl: Journal of Political Economy issn: 00223808 maglogo: N pubinfo: dt: Jul/Aug70 vid: 78 iid: 4 pid: 415 pub: University of Chicago Press artinfo: ui: 5054207 10.1086/259667 ppf: 745 ppct: 19 formats: tig: atl: Habit Formation and Dynamic Demand Functions. aug: au: Pollak, Robert A. su: Consumption (Economics) Demand function sug: subj: Consumption (Economics) Demand function ab: Most economists would agree that past consumption patterns are an important determinant of present consumption patterns, and that one ought to distinguish between long-run and short-run demand functions. But although the distinction between long-run and short-run behavior is traditional in the theory of the firm, it is seldom made in the theory of consumer behavior. In this paper I formulate a model of consumer behavior based on habit formation, beginning with a specific class of demand functions derived from the "modified Bergson family" of utility functions. The properties of these utility functions and the corresponding demand functions are briefly summarized in Section 1. I then postulate that the parameters of these functions (and hence the corresponding demand functions) depend in a specific way on past consumption; I introduce a specific habit-formation hypothesis and consider the short-run properties of the implied system of dynamic demand functions in Section 2. In the following section the long-run properties Of the dynamic system are examined, and in Section 4 it is shown that the dynamic system is locally stable. In the concluding section I survey the literature on dynamic demand functions and consider several possible directions in which the model can be generalized. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1970 holdings: @attributes: islocal: N |
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