Economic Development, Life-Cycle Consumption and Planning Hirizon
AbstractThis article presents estimates of consumer planning horizons for countries at different levels of economic development. Within an intertemporal optimization framework a direct relationship is observed between the length of consumers' planning horizons and the level of economic development. In particular, consumption behavior in a sample of developed economies reflect longer planning horizons than in the sample of less developed economics. The average planning horizon for a group of less developed economies is about 7 months, while it is 1.6 and 3.8 years for middle and high income economies, respectively. [E21, O50]
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Bibliographic InfoArticle provided by Korean International Economic Association in its journal International Economic Journal.
Volume (Year): 11 (1997)
Issue (Month): 4 ()
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Other versions of this item:
- Baffoe-Bonnie, J. & Khayum, M., 1995. "Economic Development, Life Cycle Consumption, and Planning Horizons," Papers 4-95-1-ces, Pennsylvania State - Department of Economics.
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