Noda, Akihiko - In: Economics Bulletin 31 (2011) 2, pp. 1648-1658
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.