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Preference shifts and the change of consumption composition

Addessi, William (2014) Preference shifts and the change of consumption composition. Economics letters, Vol. 125 (1), p. 14-17. ISSN 0165-1765. eISSN 1873-7374. Article.

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DOI: 10.1016/j.econlet.2014.08.001

Abstract

While most of the literature explaining the change in consumption composition has focused on the role of relative prices and non-homothetic preferences, this paper examines the importance of preference shifts. I introduce dynamics in preferences and find that they play a relevant role and that their exclusion worsens model performance at least as much as the exclusion of allowing non-homothetic preferences.

Item Type:Article
ID Code:10675
Status:Published
Refereed:Yes
Uncontrolled Keywords:Preference shifts, structural transformation, multisector, models, consumption
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Divisions:001 Università di Sassari > 01-a Nuovi Dipartimenti dal 2012 > Scienze economiche e aziendali
Publisher:Elsevier Science
ISSN:0165-1765
eISSN:1873-7374
Deposited On:22 Jan 2015 12:28

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