The role of emotion in consumption

Jan P. VOON

doi:10.5539/ijef.v5n11p95

The role of emotion in consumption

Jan P. VOON

Department of Economics

Research output: Journal Publications › Journal Article (refereed) › peer-review

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 language	English
Pages (from-to)	95-104
Number of pages	10
Journal	International Journal of Economics and Finance
Volume	5
Issue number	11
Early online date	26 Oct 2013
DOIs	https://doi.org/10.5539/ijef.v5n11p95
Publication status	Published - Oct 2013

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

Access to Document

10.5539/ijef.v5n11p95

Cite this

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KW - emotion

KW - financial crisis

KW - policy

KW - structural equation modeling

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