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Habit, seasonality, and time aggregation in consumer behaviour

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Habitual behaviour in consumer demand analysis is generally portrayed via some form of a lagged dependent variable model. The purpose of this paper is to explore the implications for habit behaviour of time aggregation. This is done by specifying both habit and seasonal components in demand relations. The results indicate that much of what has traditionally been identified as habitual behaviour is, in fact, seasonal effects.
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Document Type: Research Article

Publication date: 20 October 2001

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