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Integrability and Generalized Separability

Fally, Thibault - 2018

This paper examines demand systems where the demand for a good depends only on its own price, consumer income, and a single aggregator synthesizing information on all other prices. This generalizes directly-separable preferences where the Lagrange multiplier provides such an aggregator. As...

Persistent link: https://www.econbiz.de/10012911109

On the Welfare Costs of Consumption Uncertainty

Barro, Robert J. - 2007

major features of asset prices and returns, such as the high equity premium and low risk-free rate. A Lucas-tree model with … rare but large disasters is such a framework. In a baseline simulation, the welfare cost of disaster risk is large … -- society would be willing to lower real GDP by about 20% each year to eliminate all disaster risk, including wars. In contrast …

Persistent link: https://www.econbiz.de/10012778120

New Products, Quality Changes and Welfare Measures Computed from Estimated Demand Systems

Nevo, Aviv - 2022

This paper examines the construction of a price index based on an estimated demand system. In principle the method examined can produce a price index that accounts for introduction of new products and quality changes in existing products. However, I isolate two key assumptions that have to be...

Persistent link: https://www.econbiz.de/10013309207

Is Consumption Too Smooth?

Deaton, Angus - 2007

For thirty years, it has been accepted that consumption is smooth because permanent income is smoother than measured income. This paper considers the evidence for the contrary position, that permanent income is in fact less smooth than measured income, so that the smoothness of consumption...

Persistent link: https://www.econbiz.de/10012777377

Tobacco Spending and its Crowd-Out of Other Goods

Busch, Susan H.; Jofre-Bonet, Mireia; Falba, Tracy A.; … - 2021

Smoking is an expensive habit. Smoking households spend, on average, more than $1000 annually on cigarettes. For households in which some members smoke, smoking expenditures crowd-out other purchases, which may affect other household members, as well as the smoker. We empirically analyze how...

Persistent link: https://www.econbiz.de/10013310170

Empirical Models of Consumer Behavior

Nevo, Aviv - 2010

key issues of estimation, and conclude by summarizing some extensions …

Persistent link: https://www.econbiz.de/10013136543

The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable Television

Goolsbee, Austan; Petrin, Amil - 2021

This paper examines the introduction of Direct Broadcast Satellites as an alternative to cable television and the welfare gains such satellites generated for consumers. The extent to which satellites compete with cable has become an important issue in the debate over re-regulation of cable...

Persistent link: https://www.econbiz.de/10013237546

Patterns of Trade in the Market for Used Durables : Theory and Evidence

Porter, Robert H.; Sattler, Peter - 2022

The consumption value of a durable good diminishes as it ages due to physical deterioration and consumers' preference for the new. We develop a model of consumer specialization and trade in the market for used durables based on imperfect substitutability. Imperfect substitutability across...

Persistent link: https://www.econbiz.de/10013308470

Reservation Prices : An Economic Analysis of Cigarette Purchases on Indian Reservations

DeCicca, Philip - 2014

The special legal status of Indian tribes in the U.S. means that state excise taxes are not necessarily collected on cigarette purchases on Indian reservations. We focus on two under-studied but basic empirical economic questions this raises. Using novel data from New York surveys that asked...

Persistent link: https://www.econbiz.de/10013039707

Intertemporal Substitution in Consumption

Hall, Robert E. - 2021

Does a higher real interest rate induce significant postponement of consumption? According to the theory developed here, this question can be answered by studying the relation between the rate of growth of consumption and expected real interest rates. In postwar data for the United States,...

Persistent link: https://www.econbiz.de/10013222936