Intertemporal substitution and storable products

Igal Hendel*, Aviv Nevo

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

10 Scopus citations

Abstract

Storable products allow consumers to time their purchases to exploit price fluctuations. It has been documented that during promotions consumers buy more. The additional purchases are potentially intended not only for current use, but to be stockpiled for future consumption. This paper discusses the predictions of a consumer inventory model and reviews the available evidence. We then discuss the implications for demand estimation and present estimates of the economic magnitude of the dynamic effect of storability.

Original languageEnglish (US)
Pages (from-to)536-547
Number of pages12
JournalJournal of the European Economic Association
Volume2
Issue number2-3
DOIs
StatePublished - 2004

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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