The role of emotion in consumption

Research output: Journal PublicationsJournal Article (refereed)peer-review


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
Issue number11
Early online date26 Oct 2013
Publication statusPublished - Oct 2013

Bibliographical note

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


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

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