This paper proposes an asymmetric model within which consumer credit facilitates both consumption smoothing and rational habit modification. The model is applied to US data using a GMM approach. The evidence suggests that new credit can predict short-run changes in consumption and has assisted...

This paper uses an economic experiment to identify the presence of descriptive norms associated with the jointly determined division of a surplus. We consider the results from a two-stage experiment in which participants contribute to a common pool which is then divided using a coordination game...