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The Behavioral Life-Cycle Theory Of Consumer Behavior: Survey Evidence

Author

Listed:
  • Fred Graham

    (American University)

  • Alan G. Isaac

    (American University)

Abstract

We find that survey evidence on faculty pay-cycle choice strongly contradicts the neoclassical theory of consumer behavior. It is more favorable to the behavioral life-cycle theory of Shefrin and Thaler (1988).

Suggested Citation

  • Fred Graham & Alan G. Isaac, 2000. "The Behavioral Life-Cycle Theory Of Consumer Behavior: Survey Evidence," Microeconomics 0004004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0004004
    Note: Type of Document - .pdf (version 4); prepared on PC, Win95, WP 8, Distiller 4; to print on none; pages: 19 ; figures: none
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    References listed on IDEAS

    as
    1. Thaler, Richard H, 1990. "Saving, Fungibility, and Mental Accounts," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 193-205, Winter.
    2. Thaler, Richard H & Shefrin, H M, 1981. "An Economic Theory of Self-Control," Journal of Political Economy, University of Chicago Press, vol. 89(2), pages 392-406, April.
    3. Simon, Herbert A, 1986. "Rationality in Psychology and Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages 209-224, October.
    4. Shefrin, Hersh M & Thaler, Richard H, 1988. "The Behavioral Life-Cycle Hypothesis," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 609-643, October.
    5. Loewenstein, George & Thaler, Richard H, 1989. "Intertemporal Choice," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 181-193, Fall.
    6. Schelling, Thomas C, 1978. "Egonomics, or the Art of Self-Management," American Economic Review, American Economic Association, vol. 68(2), pages 290-294, May.
    7. Thaler, Richard H, 1994. "Psychology and Savings Policies," American Economic Review, American Economic Association, vol. 84(2), pages 186-192, May.
    8. Richard H. Thaler, 2000. "From Homo Economicus to Homo Sapiens," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 133-141, Winter.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:zbw:rwirep:0455 is not listed on IDEAS
    2. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Mathias G. Sinning, 2013. "Locus of Control and Savings," Ruhr Economic Papers 0455, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Michelle Reyers & Daniël Gerhardus Gouws, 2014. "The rationality of retirement preservation decisions: A conceptual model," Journal of Economics and Behavioral Studies, AMH International, vol. 6(5), pages 418-431.
    4. Cobb-Clark, Deborah A. & Kassenboehmer, Sonja C. & Sinning, Mathias G., 2016. "Locus of control and savings," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 113-130.
    5. Han, Chang-Keun & Sherraden, Michael, 2009. "Do institutions really matter for saving among low-income households? A comparative approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 475-483, June.
    6. Johnston, David W. & Kassenboehmer, Sonja C. & Shields, Michael A., 2016. "Financial decision-making in the household: Exploring the importance of survey respondent, health, cognitive ability and personality," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 42-61.
    7. Cristina OTTAVIANI & Daniela VANDONE, 2010. "Impulsivity and household indebtedness," Departmental Working Papers 2010-28, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    8. Victor V. Claar & Christine Cain & Ross D. Poll, 2013. "Spreading academic pay over nine or twelve months: economists are supposed to know better, but do they act better?," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2792-2800, July.
    9. Awaworyi Churchill, Sefa & Smyth, Russell, 2021. "Locus of control and energy poverty," Energy Economics, Elsevier, vol. 104(C).
    10. Ottaviani, Cristina & Vandone, Daniela, 2011. "Impulsivity and household indebtedness: Evidence from real life," Journal of Economic Psychology, Elsevier, vol. 32(5), pages 754-761.

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    More about this item

    Keywords

    behavioral life-cycle theory; consumer behavior; survey evidence;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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