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Faculty of Economics

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Corrado, L. and Holly, S.

Multiplicative habit formation and consumption: a note

Economics Letters

Abstract: A multiplicative form of the habit term in the utility function has some undesirable properties if the habit function is itself still additive (Wendner, 2003). A geometric form for the way the stock of habit accumulates can resolve these shortcomings.

JEL Codes: D11, D12, D91

Author links: Sean Holly  

Publisher's Link: http://www.sciencedirect.com/science/article/pii/S0165176511002412



Papers and Publications



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Jochmans, K., and Weidner, M. Fixed-Effect Regressions on Network Data Econometrica, forthcoming [2019]

Elliott, M. and Golub, B. A network approach to public goods accepted, Journal of Political Economy [2018]

Faraglia, E., Marcet, A., Oikonomou, R. and Scott, A. Government Debt management: the Short and the Long of it Review of Economic Studies, accepted [2018]