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Title: |
Economic Development, Life-Cycle Consumption, and Planning Horizon |
| Author: |
Baffoe-Bonnie,
John; Khayum, Mohammed |
| Author
Affiliation: |
PA State U; U
Southern IN |
| Source: |
International Economic Journal, Winter 1997, v. 11, no. 4, pp. 17-37 |
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Publication Date: |
Winter 1997 |
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Abstract: |
This article presents estimates of
consumer planning horizons for countries at different levels of economic
development. Within an intertemporal optimization framework a direct
relationship is observed between the length of consumers' planning
horizons and the level of economic development. In particular,
consumption behavior in a sample of developed economies reflect longer
planning horizons than in the sample of less developed economies The
average planning horizon for a group of less developed economies is
about 7 months, while it is 1.6 and 3.8 years for middle and high income
economies, respectively. |
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