Arbeitspapier
Modelling addiction in life-cycle models: Revisiting the treatment of latent stocks and other unobservables
Dynamic modeling of demand for goods whose cumulated stocks enter an intertemporal utility function as latent variables, is discussed. The issues include: how represent addiction, how handle unobserved expectations and changing plans, how deal with 'dynamic inconsistency'? Arguments are put forth to give all optimizing conditions attention, not only those in which all variables are observable. If the latter, fairly common, 'limited information-reduced dimension' strategy is pursued, problems are shown to arise in attempting to identify coefficients of the preference structure and to test for addictive stocks. Examples, based on quadratic utility functions, illustrate the main points and challenge the validity of testing the 'rational addiction' hypothesis, by using linear, single-equation autoregressive models, as suggested by Becker, Grossman, and Murphy (1994) and adopted in several following studies.
- Sprache
-
Englisch
- Erschienen in
-
Series: Memorandum ; No. 2009,26
- Klassifikation
-
Wirtschaft
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Model Construction and Estimation
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Health Behavior
- Thema
-
Life-cycle model
Addiction
Identification
Latent stocks
Perfect foresight
Rational expectations
Dynamic inconsistency
Lebenszyklus
Zeitpräferenz
Rationale Erwartung
Sucht
Modell-Spezifikation
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Biørn, Erik
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Oslo, Department of Economics
- (wo)
-
Oslo
- (wann)
-
2009
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Biørn, Erik
- University of Oslo, Department of Economics
Entstanden
- 2009
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