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Testing the "Catching up with the Joneses" Model with Consumption Externality in Japan

Author

Listed:
  • Akihiko Noda

    (Faculty of Economics, Toyo University)

Abstract

The purpose of this paper is to test Abel's (1990, 1999) "Catching up with the Joneses" model with a consumption externality using Japanese financial data. It is found that the model is rejected in Japan when it is estimated using generalized empirical likelihood (GEL) estimators.

Suggested Citation

  • Akihiko Noda, 2011. "Testing the "Catching up with the Joneses" Model with Consumption Externality in Japan," Economics Bulletin, AccessEcon, vol. 31(2), pages 1648-1658.
    • Handle: RePEc:ebl:ecbull:eb-11-00299
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I2-P152.pdf
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    References listed on IDEAS

    as
    1. Campbell, John Y., 2003. "Consumption-based asset pricing," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 13, pages 803-887, Elsevier.
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    More about this item

    Keywords

    Habit Formation; Consumption Externality; GEL;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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