Are assets fungible? Testing the behavioral theory of life-cycle savings
Article Abstract:
Consumption spending sensitivity vary with changes in different types of financial assets. Sensitivity of consumption spending tends to be low with changes in wealth such as houses and social security. On the other hand, consumption spending sensitivity tends to be high with changes in income and in liquid assets. Analysis of the relation between wealth and consumption showed that individuals treat assets as not being fungible.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1998
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On the consistency of backward-looking expectations: the case of the cobweb
Article Abstract:
The consistency of backward-looking expectations tend to be weak under the cobweb model. Weak consistency results whenever the autocorrelation coefficients of expectational errors remain zero for all lags. The occurrence of weak consistent expectations, as well as chaotic price fluctuations, relies on demand and supply's non-linearity and emphasis given to previous prices of expectations function.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1998
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Confidence lost and - partially - regained: consumer response to food scares
Article Abstract:
The reasons why consumers may suddenly reduce consumption, which then slowly recovers, when food scares occur, are examined in detail.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 2000
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