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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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