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Original Articles

Habit, seasonality, and time aggregation in consumer behaviour

Pages 1649-1653 | Published online: 05 Oct 2010
 

Abstract

Habitual behaviour in consumer demand analysis is generally portrayed via some form of a lagged dependent variable model. The purpose of this paper is to explore the implications for habit behaviour of time aggregation. This is done by specifying both habit and seasonal components in demand relations. The results indicate that much of what has traditionally been identified as habitual behaviour is, in fact, seasonal effects.

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