|
DSpace - Tor Vergata >
Facoltà di Economia >
CEIS - Centre for International Studies on Economic Growth >
Quaderni >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2108/198
|
| Title: | A Behavioral model of consumption |
| Authors: | Giamboni, Luigi
Waldmann, Robert |
| Keywords: | behavioral economics
subjective expectations
rational expectations
consumption and saving |
| Issue Date: | 14-Feb-2004 |
| Publisher: | CEIS |
| Series/Report no.: | Quaderni CEIS; 202 |
| Abstract: | This paper studies whether anomalies in consumption can be explained by a behavioral
model in which agents do not have rational expectations and make predictable errors in forecasting income. We use a micro-data set containing subjective expectations about future income. The paper shows that, the null hypotheses of rational expectations is rejected in favor of the behavioral model, as that consumption responds to predictable forecast errors. On average agents who we predict are too pessimistic increase consumption after the predictable positive income shock. On average agents who are too optimistic reduce consumption. |
| URI: | http://hdl.handle.net/2108/198 |
| Appears in Collections: | Quaderni
|
Files in This Item:
| File |
Description |
Size | Format |
|---|
| 202 Giamboni Waldmann.pdf | | 314Kb | Adobe PDF | View/Open |
|
Show full item record
All items in DSpace are protected by copyright, with all rights reserved.
|
