search query: @author Bowman, D. / total: 3
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| Author: | Bowman, D. |
| Title: | Loss aversion in a consumption-savings model |
| Journal: | Journal of Economic Behavior and Organization
1999 : FEB, VOL. 38:2, p. 155-178 |
| Index terms: | ECONOMIC BEHAVIOUR ORGANIZATION CONSUMPTION |
| Language: | eng |
| Abstract: | The authors propose a model of consumption and saving based on Kahneman and Tversky's Prospect Theory that implies a fundamental asymmetry in consumption behavior inconsistent with other models of consumption. When there is sufficient income uncertainty, a person resists lowering consumption in response to bad news about future income. This resistance is greater that the resistance to increasing consumption in response to good news. The authors present empirical evidence from five countries that confirms this behavior. |
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