Demuynck, Thomas

Verriest, Ewout

We provide a revealed preference analysis of the "habits as durables" model. This approach avoids the need to impose a functional form on the underlying utility function. We show that our characterization is testable by means of linear programming methods, and we demonstrate its practical usefulness by means of an application to cigarette consumption using a Spanish household consumption data set. We find that the "habits as durables" model has better empirical fit in terms of predictive success compared to the "short memory habits" and life cycle models

Demuynck, T.

Verriest, E.

NARCIS 

I'll never forget my first cigarette: A revealed preference analysis of the `habits as durables' model

We provide a revealed preference analysis of the “habits as durables” model. This approach avoids the need to impose a functional form on the underlying utility function. We show that our characterization is testable by means of linear programming methods, and we demonstrate its practical usefulness by means of an application to cigarette consumption using a Spanish household consumption data set. We find that the “habits as durables” model has better empirical fit in terms of predictive success compared to the “short memory habits” and life cycle models.status: publishe

Lirias

International Economic Review

I’ll never forget my first cigarette: a revealed preference analysis of the ‘habits as durables’ model

Thomas Demuynck

Ewout Verriest

Crossref

I’LL NEVER FORGET MY FIRST CIGARETTE: A REVEALED PREFERENCE ANALYSIS OF THE “HABITS AS DURABLES” MODEL*

DI-fusion

I'll never forget my first cigarette: A revealed preference analysis of the 'habits as durables' model

Maastricht University Research Portal

I'll never forget my first cigarette: A revealed preference analysis of the 'habits as durables' model

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NARCIS

Lirias

Crossref

DI-fusion

Maastricht University Research Portal

Maastricht University Research Portal