Habit Formation and Dynamic Demand Functions

@article{Pollak1970HabitFA,
  title={Habit Formation and Dynamic Demand Functions},
  author={Robert A Pollak},
  journal={Journal of Political Economy},
  year={1970},
  volume={78},
  pages={745 - 763}
}
  • R. Pollak
  • Published 1 July 1970
  • Economics
  • Journal of Political Economy
Most economists would agree that past consumption patterns are an important determinant of present consumption patterns, and that one ought to distinguish between long-run and short-run demand functions. But although the distinction between long-run and short-run behavior is traditional in the theory of the firm, it is seldom made in the theory of consumer behavior. If we regard demand theory as a theory of how a given amount of money (expenditure, called income) is allocated among goods, then… 
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