The Shape of Temptation: Implications for the Economic Lives of the Poor

This paper argues that the relation between temptations and the level of consumption plays a key role in explaining the observed behaviors of the poor. Temptation goods are defined to be the set of goods that gen- erate positive utility for the self that consumes them, but not for any previous self that anticipates that they will be consumed in the future.

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Year of publication:	2010-05
Authors:	Banerjee, Abhijit ; Mullainathan, Sendhil
Institutions:	eSocialSciences
Subject:	consumption \| poor \| temptation goods \| interest rates \| investment \| savings \| borrowing \| risk-behavior \| Euler inequality

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Institutional Papers
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008505784