Habits, Rationality and Myopia in the Life Cycle Consumption Function.

This paper considers the effect both on solved-out, forward-looking consumption functions and on Euler equations of two alternative hypotheses about habits: rational habits assume that consumers are aware of the effect of their current consumption decisions on their future marginal rates of substitu...

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Bibliographic Details
Main Author: Muellbauer, J
Format: Journal article
Language:English
Published: 1988