Title

The role of emotion in consumption

Document Type

Journal article

Source Publication

International Journal of Economics and Finance

Publication Date

10-1-2013

Volume

5

Issue

11

First Page

95

Last Page

104

Keywords

emotion, financial crisis, consumption, structural equation modeling, China, policy

Abstract

This paper develops and tests a model of consumption under uncertainty. The role of emotion is incorporated into the permanent income or life cycle theory of consumption (income-based model). An empirical test using structural equation modeling and China’s consumer survey data (N = 6993) showed that our consumption model with anticipatory feelings performed significantly better than pure income-based consumption models. Our results have practical application for policy formulation in China.

DOI

10.5539/ijef.v5n11p95

Print ISSN

1916971X

E-ISSN

19169728

Publisher Statement

Copyright © Canadian Center of Science and Education

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Full-text Version

Publisher’s Version

Recommended Citation

Voon, J. P. (2013). The role of emotion in consumption. International Journal of Economics and Finance, 5(11), 95-104. doi: 10.5539/ijef.v5n11p95