The role of emotion in consumption

Research output: Journal PublicationsJournal Article (refereed)

Abstract

This paper develops and tests a model of consumption under uncertainty. The role of emotion is incorporated into the permanent income or life cycle theory of consumption (income-based model). An empirical test using structural equation modeling and China’s consumer survey data (N = 6993) showed that our consumption model with anticipatory feelings performed significantly better than pure income-based consumption models. Our results have practical application for policy formulation in China.
Original languageEnglish
Pages (from-to)95-104
Number of pages10
JournalInternational Journal of Economics and Finance
Volume5
Issue number11
Early online date26 Oct 2013
DOIs
Publication statusPublished - Oct 2013

Fingerprint

Emotion
China
Income
Empirical test
Consumer survey
Permanent income
Structural equation modeling
Survey data
Life cycle theory
Uncertainty

Bibliographical note

This research was supported by a research grant from Lingnan University (Grant Number DR09D4).

Keywords

  • China
  • consumption
  • emotion
  • financial crisis
  • policy
  • structural equation modeling

Cite this

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title = "The role of emotion in consumption",
abstract = "This paper develops and tests a model of consumption under uncertainty. The role of emotion is incorporated into the permanent income or life cycle theory of consumption (income-based model). An empirical test using structural equation modeling and China’s consumer survey data (N = 6993) showed that our consumption model with anticipatory feelings performed significantly better than pure income-based consumption models. Our results have practical application for policy formulation in China.",
keywords = "China, consumption, emotion, financial crisis, policy, structural equation modeling",
author = "VOON, {Jan P.}",
note = "This research was supported by a research grant from Lingnan University (Grant Number DR09D4).",
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journal = "International Journal of Economics and Finance",
issn = "1916-971X",
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The role of emotion in consumption. / VOON, Jan P.

In: International Journal of Economics and Finance, Vol. 5, No. 11, 10.2013, p. 95-104.

Research output: Journal PublicationsJournal Article (refereed)

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N2 - This paper develops and tests a model of consumption under uncertainty. The role of emotion is incorporated into the permanent income or life cycle theory of consumption (income-based model). An empirical test using structural equation modeling and China’s consumer survey data (N = 6993) showed that our consumption model with anticipatory feelings performed significantly better than pure income-based consumption models. Our results have practical application for policy formulation in China.

AB - This paper develops and tests a model of consumption under uncertainty. The role of emotion is incorporated into the permanent income or life cycle theory of consumption (income-based model). An empirical test using structural equation modeling and China’s consumer survey data (N = 6993) showed that our consumption model with anticipatory feelings performed significantly better than pure income-based consumption models. Our results have practical application for policy formulation in China.

KW - China

KW - consumption

KW - emotion

KW - financial crisis

KW - policy

KW - structural equation modeling

UR - http://commons.ln.edu.hk/sw_master/4169

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DO - 10.5539/ijef.v5n11p95

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JO - International Journal of Economics and Finance

JF - International Journal of Economics and Finance

SN - 1916-971X

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