A Life-Cycle Model of Habitual Dependence in Leisure Demand

  • Constantin T. Gurdgiev
  • Published 2004
This model proposes an extension of the traditional habits in consumption literature to encompass the time-persistence of leisure demand. The model establishes a link between the habitual leisure and income effects, which amplifies the traditional effects on savings, investment and consumption distribution across periods. The disutility of habits stock… (More)