How forward looking are consumers? Further evidence for the United States.

A modified version of a standard model of consumption is developed to test how forward looking consumers are. The model supports the existence of both rule-of-thumb consumers and consumers who are, to some degree, myopic with regard to their future income and taxes. However, the model assumes that...

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Publicado en:Southern Economic Journal Vol. 66; no. 4; pp. 991 - 1001
Autor principal: Himarios, Daniel
Formato: Artículo
Publicado: Southern Economic Association April 2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au: Himarios, Daniel
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        Mathematical models of consumption
        Dynamic programming
        Income
        United States
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          United States
          Mathematical models of consumption
          Dynamic programming
          Income
      ab: A modified version of a standard model of consumption is developed to test how forward looking consumers are. The model supports the existence of both rule-of-thumb consumers and consumers who are, to some degree, myopic with regard to their future income and taxes. However, the model assumes that this latter set of consumers is behaving in a manner that is “boundedly rational,” whereas consumers' quasi-myopic behavior actually derives from many sources and does not necessarily mean that they are not optimizing. The model suggests that the simple permanent income hypothesis fails to accurately describe consumer behavior. The model was tested using data for the United States for the period 1951–1990 and evidence of myopic behavior among consumers was found.
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    language: English
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