Title: New evidence on excess sensitivity of household consumption
Abstract: The monthly salaries and allowances of Korean government employees are known in advance but vary greatly throughout the year. Using a Korean monthly panel data set, the present study examines how nondurable consumption expenditures in households headed by government employees respond to predictable income changes. The study finds a moderate excess sensitivity in consumption that can be attributed to about 9% of the households. Further analysis shows that these 9% of the households have lower 'committed expenditures' and are likely inattentive consumers.
Publication Year: 2014
Publication Date: 2014-02-04
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 10
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