Are assets fungible? Testing the behavioral theory of life-cycle savings

Article Abstract:

Consumption spending sensitivity vary with changes in different types of financial assets. Sensitivity of consumption spending tends to be low with changes in wealth such as houses and social security. On the other hand, consumption spending sensitivity tends to be high with changes in income and in liquid assets. Analysis of the relation between wealth and consumption showed that individuals treat assets as not being fungible.

Savings, Consumer behavior

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On the consistency of backward-looking expectations: the case of the cobweb

Article Abstract:

The consistency of backward-looking expectations tend to be weak under the cobweb model. Weak consistency results whenever the autocorrelation coefficients of expectational errors remain zero for all lags. The occurrence of weak consistent expectations, as well as chaotic price fluctuations, relies on demand and supply's non-linearity and emphasis given to previous prices of expectations function.

Autocorrelation (Statistics), Nonlinear theories

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Confidence lost and - partially - regained: consumer response to food scares

Article Abstract:

The reasons why consumers may suddenly reduce consumption, which then slowly recovers, when food scares occur, are examined in detail.

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