چکیده:
Consumption is the principal feature of Iran’s Gross National Production. Therefore, recognizing of factors that influence it is quite crucial. This article, investigates habit formation, durability, relative risk aversion and intertemporal substitution in consumption expenditures of Iranian households. For empirical study, at first, we constructed two weighted portfolio of the main assets return that households hold them. Then, by using generalized method of moments, we examined some models with the mentioned factors in pattern of households’ consumption for 1979-2012 periods. Our Empirical findings indicated that for durable goods, the effect of habit persistence dominated the effect of durability in consumption expenditures and for semi durable goods vice versa. Also, for semi-durable and durable goods the effect of durability dominated the effect of habit formation. Furthermore, the results indicate that coefficients of relative risk aversion and elasticity of intertemporal substitution are between 0.25 to 0.95 and 1.05 to 4, respectively.
خلاصه ماشینی:
"We examine habit formation and durability on data of Iran’s consumption and calculate coefficients of relative risk aversion and elasticity of intertemporal substitution by using of generalized moment method (GMM) presented by Hansen (1982).
Estimated parameters that determine consumer behavior are consist of coefficient of durable goods or habit formation, relative risk aversion and elasticity of intertemporal substitution.
The paper is organized as follows: In section 2, we review theoretical bases of habit formation, durability of durable goods, relative risk aversion and elasticity of intertemporal substitution through a framework.
2. The model In this paper, we want to expand standard Von Neumann-Morgenstern utility of consumption in order that by using of time-nonseparable preferences can analyze effects of habits formation and durability of consumption goods on the consumer’s utility.
In order to enter habit formation and durability of consumption goods into the preference or utility function of consumer, we modeled the term as: (4) This internal effect shows distance between past and now of flow of services.
/ Figure 1: Consumption costs of SDG, DG, SDGDG, SE, ND and SEND Source: Authors At first, in order to estimate the coefficient of habit formation and durability of goods (b1) in Equation (22), we use SDGDG, portfo1 and portfo2.
4. Conclusion The aim of this paper was to survey the habit formation, durability of consumption goods and calculate coefficients of relative risk aversion and elasticity of intertemporal substitution in consumption behavior of Iranian households."