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Habit formation, interdependent preferences and demographic effects in the almost ideal demand system

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  • Alessie, R.J.M.
  • Kapteyn, A.J.

    (Tilburg University, School of Economics and Management)

Abstract

The authors model (myopic) habit formation, interdependence of preferences among consumers, and demographic effects as taste shifters in a micro consumer demand model of the almost ideal demand variety. The model is estimated for Dutch micro data. The authors investigate the dynamic properties of the model and find that it behaves very differently from models without interdependence of preferences. The implications for micro-macro modeling are discussed. Copyright 1991 by Royal Economic Society.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Alessie, R.J.M. & Kapteyn, A.J., 1991. "Habit formation, interdependent preferences and demographic effects in the almost ideal demand system," Other publications TiSEM 7d3ef697-5355-430e-b595-9, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:7d3ef697-5355-430e-b595-9e9539fb93db
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