Consumption as a Social Phenomenon in the Modern Theory of Intertemporal Choice
Bibliographic Data
| ID | 12229643 |
|---|---|
| Authors | Daria Pignalosa (0000-0002-7336-6375, University of Teramo, corresponding author) |
| Year | 2024 |
| Volume | 37 |
| Issue | 2 |
| Pages | 543-563 |
| Publication date | 2024-12-16 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0953-8259 • E-ISSN: 1465-3982 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/09538259.2024.2434540 |
| OpenAlex | W4405419286 |
| Language | EN |
| References cited | 70 |
The modern theory of intertemporal choice rests on the idea that individuals allocate resources over time so as to maximise lifetime expected utility. This analytical framework rests on the theories developed in the 1950s by Modigliani and Friedman and revisited in the 1970s with the introduction of the rational expectations assumption. In response to the poor empirical performance of the original model, during the last decades a number of modifications and extensions have been proposed in the attempt at making the model able to explain the data. An extremely popular extension involves the dependence of utility on either individual’s own past consumption or aggregate consumption. Such models, usually referred to as including ‘habit-forming preferences’ or ‘social preferences’, are viewed as incorporating insights belonging to the approach that views consumption as largely determined by social factors. The idea is that consumption is affected by individuals’ concern for the display of their social status, an insight dating back at least to the work of Veblen. The paper discusses the implications of the assumptions of ‘habit formation’ and ‘social preferences’, inquiring into their relationship with the view of consumption as a social phenomenon and their compatibility with neoclassical theory of intertemporal choice
Conspicuous consumption · Consumption (sociology · Economics · Institutional economics · Microeconomics · Neoclassical economics · Phenomenon · Positive economics · Sociology · Veblen good · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy
The general theory of employment, interest, and money
Social Limits to Growth
Understanding Consumption
Rising household debt
Stationary Ordinal Utility and Impatience
Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand
An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area
The equity premium
Theory of the Consumption Function
Taste formation in Classical Political Economy
The Theory Of The Leisure Class
Micro-Level Estimation of Optimal Consumption Choice With Intertemporal Nonseparability in Preferences and Measurement Errors
Habit Persistence, Nonseparability between Consumption and Leisure, or Rule-of-Thumb Consumers
International Evidence on Sticky Consumption Growth
The Protestant Ethic and the Spirit of Capitalism
Cycles and Growth
Debt-credit Flows and Stocks in a Supermultiplier Model with Two Autonomous Demand Components
Keynes‘ Economic Thought and the Theory of Consumer Behaviour
Income, Employment and Public Policy
Stochastic Implications of the Life Cycle-Permanent Income Hypothesis
By Force of Habit
The Adjustment of Consumption to Changing Expectations About Future Income
Habit Formation
The Limitations of Marginal Utility
Habit Formation and Dynamic Demand Functions
Contemporary Issues in Economics
The Conceptual Resilience of the Atomistic Individual in Mainstream Economic Rationality
Postwar Economic Problems
Social Interdependencies in Consumption
The Life-Cycle Model of Consumption and Saving
The Drifting Influence of Hall's Random-Walk Hypothesis on Consumption Modeling
| Citation velocity | historical |
|---|---|
| Highly cited | No |