The role of emotion in consumption
International Journal of Economics and Finance
emotion, financial crisis, consumption, structural equation modeling, China, policy
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.
Copyright © Canadian Center of Science and Education
Access to external full text or publisher's version may require subscription.
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