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MODELLING HABIT PERSISTENCE *
Author(s) -
Lubulwa A. S. G.
Publication year - 1982
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.1982.tb00442.x
Subject(s) - persistence (discontinuity) , economics , habit , microeconomics , taste , durable good , econometrics , engineering , psychology , neuroscience , geotechnical engineering , psychotherapist
ABSTRACT The purpose of this paper is to derive the demand functions corresponding to an intertemporal linear expenditure system in which goods are durable, and in which there are penalty costs for changes in planned stocks. Taste changes over time can be interpreted as changes in the technology converting goods into characteristics.