Life-cycle consumption under social interactions

Journal of Economic Dynamics and Control

Volumn 25, Issue 1-2, 2001, Pages 35-83

  Binder, Michael ^a   Pesaran, M Hashem ^b  

^a UNIVERSITY OF MARYLAND   (United States)

^b UNIVERSITY OF CAMBRIDGE   (United Kingdom)

Author keywords

D91; Disparate information; E21; Habit formation; Life cycle model; Prudence; Social interactions

Indexed keywords

EID: 0012175397     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1889(99)00069-X     Document Type: Article

References (37)

1. Abel A.B. Asset prices under habit formation and catching up with the Joneses. American Economic Review. 80:1990;38-42.
2. Becker G.S. Altruism in the family and selfishness in the market place. Economica. 48:1981;1-15.
3. Bernheim D. A theory of conformity. Journal of Political Economy. 102:1994;841-877.
4. Binder M., Pesaran M.H. Multivariate linear rational expectations models. characterization of the nature of the solutions and their fully recursive computation Econometric Theory. 13:1997;877-888.
5. Binder M., Pesaran M.H. Decision making in the presence of heterogeneous information and social interactions. International Economic Review. 39:1998;1027-1052.
6. Binder, M., Pesaran, M.H., Samiei, S.H., 2000. Solution of nonlinear rational expectations models with applications to finite-horizon life-cycle models of consumption. Computational Economics, forthcoming.
7. Brock, W.A., Durlauf, S.N., 2000. Interactions-based models. In: Heckman, J.J., Leamer, E. (Eds.), Handbook of Econometrics, vol. 5. North-Holland, Amsterdam, forthcoming.
8. Browning M., Lusardi A. Household saving. micro theories and micro facts Journal of Economic Literature. 34:1996;1797-1855.
9. Caballero R.J. Consumption puzzles and precautionary saving. Journal of Monetary Economics. 25:1990;113-136.
10. Clark A.E., Oswald A.J. Satisfaction and comparison income. Journal of Public Economics. 61:1996;359-381.
11. Clark A.E., Oswald A.J. Comparison-concave utility and following behaviour in social and economic settings. Journal of Public Economics. 70:1998;133-155.
12. Clarida R.H. Aggregate stochastic implications of the life-cycle hypothesis. Quarterly Journal of Economics. 106:1991;851-867.
13. Deaton A.S. Saving and liquidity constraints. Econometrica. 59:1991;1221-1248.
14. Deaton A.S. Understanding Consumption. 1992;Clarendon Press, Oxford.
15. Duesenberry J.S. Income, Saving, and the Theory of Consumer Behavior. 1949;Harvard University Press, Cambridge.
16. Easterlin R.A. Does economic growth improve the human lot? some empirical evidence. David P.A., Reder M.W. Nations and Households in Economic Growth: Essays in Honor of Moses Abramovitz. 1974;89-125 Academic Press, New York.
17. Frank R.H. Choosing the Right Pond: Human Behavior and the Quest for Status. 1985;Oxford University Press, Oxford.
18. Gali J. Keeping up with the Joneses. consumption externalities, portfolio choice, and asset prices Journal of Money, Credit and Banking. 26:1994;1-8.
19. Goodfriend M. Information aggregation bias. American Economic Review. 82:1992;508-519.
20. Hall R.E. Stochastic implications of the life cycle-permanent income hypothesis. theory and evidence Journal of Political Economy. 96:1978;971-987.
21. Jones S.R.G. The Economics of Conformism. 1984;Basil Blackwell, Oxford.
22. Kapteyn A., van de Geer S., van de Stadt H., Wansbeek T. Interdependent preferences. an econometric analysis Journal of Applied Econometrics. 12:1997;665-686.
23. Kapteyn A., Wansbeek T. Empirical evidence on preference formation. Journal of Economic Psychology. 2:1982;137-154.
24. Koop G., Pesaran M.H., Potter S.M. Impulse response analysis in nonlinear multivariate models. Journal of Econometrics. 74:1996;119-147.
25. Leibenstein H. Bandwagon, snob, and Veblen effects in the theory of consumers' demand. Quarterly Journal of Economics. 64:1950;183-207.
26. Mason C.F., Phillips O.R. Dynamic Learning in a two-person Experimental Game. 1999;Mimeo, University of Wyoming.
27. McKelvey R., Palfrey T.R. An experimental study of the centipede game. Econometrica. 60:1992;803-836.
28. Muellbauer J. Habits, rationality and myopia in the life cycle consumption function. Annales d'Economie et de Statistique. 9:1988;47-70.
29. Muellbauer J., Lattimore R. The consumption function: a theoretical and empirical overview. Pesaran M.H., Wickens M.R. Handbook of Applied Econometrics: Macroeconomics. 1995;221-311 Basil Blackwell, Oxford.
30. Ok E.A., Koçkesen L. Negatively Interdependent Preferences. 1997;Mimeo, New York University.
31. Pesaran M.H. Saving and consumption behavior. Newman P., Milgate M., Eatwell J. The new Palgrave Dictionary of Money and Finance. 1992;383-387 Macmillan, London.
32. Pesaran, M.H., 1999. On aggregation of linear dynamic models. Mimeo, University of Cambridge and University of Southern California.
33. Pischke J.-S. Individual income, incomplete information, and aggregate consumption. Econometrica. 63:1995;805-840.
34. Pollak R.A. Interdependent preferences. American Economic Review. 66:1976;309-320.
35. Postlewaite A. The social basis of interdependent preferences. European Economic Review. 42:1998;779-800.
36. Veblen T. The Theory of the Leisure Class: An Economic Study in the Evolution of Institutions. 1899;Macmillan, New York.
37. Young H.P. The economics of conventions. Journal of Economic Perspectives. 10:1996;105-122.