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An experiment on consumption responses to future price and interest rates

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

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An experiment on consumption responses to future price and interest rates. / Luhan, Wolfgang; Roos, Michael W.m.; Scharler, Johann.

Experiments in macroeconomics. ed. / John Duffy. Emerald Group Publishing Limited, 2014. p. 139-166 (Research in Experimental Economics; Vol. 17).

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

Harvard

Luhan, W, Roos, MWM & Scharler, J 2014, An experiment on consumption responses to future price and interest rates. in J Duffy (ed.), Experiments in macroeconomics. Research in Experimental Economics, vol. 17, Emerald Group Publishing Limited, pp. 139-166. https://doi.org/10.1108/S0193-230620140000017005

APA

Luhan, W., Roos, M. W. M., & Scharler, J. (2014). An experiment on consumption responses to future price and interest rates. In J. Duffy (Ed.), Experiments in macroeconomics (pp. 139-166). (Research in Experimental Economics; Vol. 17). Emerald Group Publishing Limited. https://doi.org/10.1108/S0193-230620140000017005

Vancouver

Luhan W, Roos MWM, Scharler J. An experiment on consumption responses to future price and interest rates. In Duffy J, editor, Experiments in macroeconomics. Emerald Group Publishing Limited. 2014. p. 139-166. (Research in Experimental Economics). https://doi.org/10.1108/S0193-230620140000017005

Author

Luhan, Wolfgang ; Roos, Michael W.m. ; Scharler, Johann. / An experiment on consumption responses to future price and interest rates. Experiments in macroeconomics. editor / John Duffy. Emerald Group Publishing Limited, 2014. pp. 139-166 (Research in Experimental Economics).

Bibtex

@inbook{8c28808d5ba142dfa9941eac0143653b,
title = "An experiment on consumption responses to future price and interest rates",
abstract = "We design an experiment to investigate the influence of announced future variations in interest rates and prices on consumption decisions. In an experimental implementation of the discounted utility model, the subjects learn the entire paths of inflation and interest rates prior to deciding on a consumption path. We decompose the total change in consumption that results from changes in either interest rates or inflation rates into anticipation and impact effects. While impact effects are of similar orders of magnitude as in the model, future changes in inflation or interest rates exert substantially smaller effects on current consumption than predicted by the model.",
keywords = "Consumption, saving, intertemporal utility maximization, macroeconomic experiment",
author = "Wolfgang Luhan and Roos, {Michael W.m.} and Johann Scharler",
year = "2014",
month = nov,
doi = "10.1108/S0193-230620140000017005",
language = "English",
isbn = "978-1-78441-195-4",
series = "Research in Experimental Economics",
publisher = "Emerald Group Publishing Limited",
pages = "139--166",
editor = "John Duffy",
booktitle = "Experiments in macroeconomics",

}

RIS

TY - CHAP

T1 - An experiment on consumption responses to future price and interest rates

AU - Luhan, Wolfgang

AU - Roos, Michael W.m.

AU - Scharler, Johann

PY - 2014/11

Y1 - 2014/11

N2 - We design an experiment to investigate the influence of announced future variations in interest rates and prices on consumption decisions. In an experimental implementation of the discounted utility model, the subjects learn the entire paths of inflation and interest rates prior to deciding on a consumption path. We decompose the total change in consumption that results from changes in either interest rates or inflation rates into anticipation and impact effects. While impact effects are of similar orders of magnitude as in the model, future changes in inflation or interest rates exert substantially smaller effects on current consumption than predicted by the model.

AB - We design an experiment to investigate the influence of announced future variations in interest rates and prices on consumption decisions. In an experimental implementation of the discounted utility model, the subjects learn the entire paths of inflation and interest rates prior to deciding on a consumption path. We decompose the total change in consumption that results from changes in either interest rates or inflation rates into anticipation and impact effects. While impact effects are of similar orders of magnitude as in the model, future changes in inflation or interest rates exert substantially smaller effects on current consumption than predicted by the model.

KW - Consumption

KW - saving

KW - intertemporal utility maximization

KW - macroeconomic experiment

U2 - 10.1108/S0193-230620140000017005

DO - 10.1108/S0193-230620140000017005

M3 - Chapter (peer-reviewed)

SN - 978-1-78441-195-4

T3 - Research in Experimental Economics

SP - 139

EP - 166

BT - Experiments in macroeconomics

A2 - Duffy, John

PB - Emerald Group Publishing Limited

ER -

ID: 3533202