"The role of emotion in consumption" by Jan Piaw, Thomas VOON
 

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

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