Habit Formation in Consumer Preferences: Evidence from Panel Data

By Karen E. Dynan. 2000

509 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Gender Studies

View Paper: https://www.semanticscholar.org/paper/d5bf6c5636a9934cf6413075b0ff788d243b6b6d

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Citations in the corpus

MEASURING INTERTEMPORAL SUBSTITUTION: THE IMPORTANCE OF METHOD CHOICES AND SELECTIVE REPORTING (2015, background): “Dynan (2000), however, nds little evidence for habit formation and even reports a negative coef cient for lagged consumption, which contributes to larger estimates of the coef cient on the rate of return.”
Precautionary savings and wealth distribution under habit formation preferences (2003, methodology): “Meghir and Weber (1996) and Dynan (2000) reject the hypothesis of habit formation using individual level data.”
How Large is the Housing Wealth Effect? a New Approach (2006, unknown): “…of habits H to consumption (if χ = 0, habits are irrelevant), and the habit stock evolves according to H t+1 = H t (1 − λ) + (C t − H t )λ. Dynan (2000) shows that in Muellbauer's model the Euler equation can be approximated by ∆ log C t+1 = c 0 + χ∆ log C t + ε t+1 , (1) so that the…”
Quantile regression for dynamic panel data with fixed effects (2011, methodology): “Previous research, such as Dynan (2000), find no evidence of habit formation using the PSID dataset and ordinary least squares for estimation at annual frequency.”
Natural Expectations, Macroeconomic Dynamics, and Asset Pricing (2012, background): “This is the approximate process that consumption growth should follow when a consumer has habit preferences; see, for example, Dynan (2000).”
Natural rate measures in an estimated DSGE model of the U.S. economy (2008, unknown): “We note some skepticism regarding the structural interpretation of the habit parameters given that microeconomic evidence (Dynan, 2000), and some macroeconomic evidence (Kiley, 2007a) suggest that the support for habit-persistence is quite weak.”
Estimating Panel Models With Internal and External Habit Formation (2010, methodology): “Following Dynan (1993), I measure consumption uncertainty by the squared consumption growth rate, which I add to the estimation in regression 11.”
Does Stock Market Wealth Matter for Consumption (2001, background): “One implication of habit formation is that one should observe positive serial correlation in consumption growth at the household-level; Dynan (2000) finds no such correlation for annual food consumption growth, suggesting that habit formation is unimportant.”
Estimating Euler equations with noisy data: two exact GMM estimators (2009, background): “(12) Note that we now have an additional parameter vector ( ) to estimate.”
Generalized Method of Moments and Macroeconomics (2002, methodology): “Under a series of approximations (see Dynan 2000), the rst-order condition may be written as ã logCt D Œ C ã logCtƒ1 C et .”
Habit Formation and Macroeconomic Models of the Term Structure of Interest Rates (2007, methodology): “Dynan (2000) tests and rejects habit formation in consumption using annual household food consumption (PSID) data.”
"Consumption and habits : evidence from panel data" (2002, unknown): “Some recent exceptions are the papers by Meghir and Weber (1996) and Dynan (2000), which do not find evidence of habit formation in preferences at the household level, and Naik and Moore (1996) which find support for the habit formation model.”