Consumption externalities, habit formation and equilibrium efficiency

Scandinavian Journal of Economics

Volumn 106, Issue 2, 2004, Pages 231-251

  Alonso Carrera, Jaime ^a   Caballé, Jordi ^b   Raurich, Xavier ^c  

^a UNIVERSITY OF VIGO   (Spain)

^b UNIVERSITAT AUTÒNOMA DE BARCELONA   (Spain)

^c UNIVERSITY OF GIRONA   (Spain)

Author keywords

Consumption externalities; Equilibrium efficiency; Habit formation

Indexed keywords

CAPITAL MARKET; CONSUMPTION BEHAVIOR; SPILLOVER EFFECT; TAX SYSTEM;

EID: 4444338620     PISSN: 03470520     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.0347-0520.2004.00357.x     Document Type: Article

References (21)

1. Abel, A. (1990), Asset Prices under Habit Formation and Catching Up with the Joneses, American Economic Review 80, 38-42.
2. Abel, A. (1999), Risk Premia and Term Premia in General Equilibrium, Journal of Monetary Economics 43, 3-33.
3. Alonso-Carrera, J., Caballé, J. and Raurich, X. (2004), Growth, Habit Formation, and Catching Up with the Joneses, forthcoming in European Economic Review.
4. Brock, W. and Turnovsky, S. (1981), The Analysis of Macroeconomic Policies in Perfect Foresight Equilibrium, International Economic Review 22, 179-209.
5. Campbell, J. Y. and Cochrane J. H. (1999), By Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior, Journal of Political Economy 107, 205-251.
6. Carrasco, R., Labeaga, J. M. and López, J. D. (2002), Consumption and Habits: Evidence from Panel Data, CEPR Discussion Paper no. 3520.
7. Carroll, C. (2000), Solving Consumption Models with Multiplicative Habits, Economics Letters 68, 67-77.
8. Carroll, C., Overland, J. and Weil, D. (1997), Comparison Utility in a Growth Model, Journal of Economic Growth 2, 339-367.
9. Carroll, C., Overland, J. and Weil, D. (2000), Saving and Growth with Habit Formation, American Economic Review 90, 341-355.
10. Constantinides, G. M. (1990), Habit Formation: A Resolution of the Equity Premium Puzzle, Journal of Political Economy 98, 519-543.
11. Cooley, T. F. and Prescott, E. C. (1995), Economic Growth and Business Cycles, in T. F. Cooley (ed.), Frontiers of Business Cycle Research, Princeton University Press, Princeton, NJ.
12. Dynan, K. E. (2000), Habit Formation in Consumer Preferences: Evidence from Panel Data, American Economic Review 90, 391-406.
13. Ferson, W. E. and Constantinides, G. M. (1991), Habit Persistence and Durability in Aggregate Consumption: Empirical Test, Journal of Financial Economics 29, 199-240.
14. Fisher, W. H. and Hof, F. X. (2000), Relative Consumption, Economic Growth, and Taxation, Journal of Economics 72, 241-262.
15. Gali, J. (1994), Keeping Up with the Joneses: Consumption Externalities, Portfolio Choice, and Asset Prices, Journal of Money, Credit and Banking 26, 1-8.
16. Hall, R. (1971), The Dynamic Effects of Fiscal Policy in an Economy with Foresight, Review of Economic Studies 38, 229-244.
17. Heaton, J. (1995), An Empirical Investigation of Asset Pricing with Temporally Dependent Preference Specifications, Econometrica 63, 681-717.
18. Lettau, M. and Uhlig, H. (2000), Can Habit Formation Be Reconciled with Business Cycles Facts?, Review of Economic Dynamics 3, 79-99.
19. Ljungqvist, L. and Uhlig, H. (2000), Tax Policy and Aggregate Demand Management Under Catching Up with the Joneses, American Economic Review 90, 356-366.
20. Shieh, J., Lai, C. and Chang, W. (2000), Addictive Behaviour and Endogenous Growth, Journal of Economics 72, 263-273.
21. Solnick, S. J. and Hemenway, D. (1998), Is More Always Better? A Survey on Positional Concerns, Journal of Economic Behavior and Organization 37, 373-383.