Loss aversion in a consumption-savings model Export

@article{Bowman99, abstract = {We propose a model of consumption and saving based on Kahneman and Tversky's Prospect Theory that implies a fundamental asymmetry in consumption behavior inconsistent with other models of consumption. When there is sufficient income uncertainty, a person resists lowering consumption in response to bad news about future income. This resistance is greater than the resistance to increasing consumption in response to good news. We present empirical evidence from five countries that confirms this behavior.}, author = {Bowman, David and Minehart, Deborah and Rabin, Matthew}, citeulike-article-id = {841325}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/S0167-2681(99)00004-9}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6V8F-3W4PP28-3/2/2cfd9b52b7cdaf01fc2ef1207c13e524}, comment = {Recommended by Jinhua Zhao for his seminar in the behavioral economics group (BEG) at Iowa State University.}, day = {1}, doi = {10.1016/S0167-2681(99)00004-9}, journal = {Journal of Economic Behavior \& Organization}, keywords = {consumptiontheory, economics, jinhua\_zhao\_seminar, prospecttheory, riskaversion, uncertainty}, month = {February}, number = {2}, pages = {155--178}, posted-at = {2006-09-12 20:49:08}, priority = {2}, title = {Loss aversion in a consumption-savings model}, url = {http://dx.doi.org/10.1016/S0167-2681(99)00004-9}, volume = {38}, year = {1999} }

TY - JOUR ID - Bowman99 L3 - citeulike-article-id:841325 N2 - We propose a model of consumption and saving based on Kahneman and Tversky's Prospect Theory that implies a fundamental asymmetry in consumption behavior inconsistent with other models of consumption. When there is sufficient income uncertainty, a person resists lowering consumption in response to bad news about future income. This resistance is greater than the resistance to increasing consumption in response to good news. We present empirical evidence from five countries that confirms this behavior. IS - 2 JF - Journal of Economic Behavior & Organization EP - 178 TI - Loss aversion in a consumption-savings model VL - 38 SP - 155 KW - consumptiontheory KW - economics KW - jinhua_zhao_seminar KW - prospecttheory KW - riskaversion KW - uncertainty N1 - Recommended by Jinhua Zhao for his seminar in the behavioral economics group (BEG) at Iowa State University. AU - Bowman, David AU - Minehart, Deborah AU - Rabin, Matthew PY - 1999/02/01/ UR - http://dx.doi.org/10.1016/S0167-2681(99)00004-9 ER -