2019 Volume 12 Pages 190-214
This study examines the empirical validity and cross-country comparison of the household consumption anomalies in four major economies of Japan, USA, China and India. The panel data from the “Household Survey on Consumer Preferences and Satisfaction” conducted by Osaka University in the four major economies over the years from 2009 to 2012 are statistically analyzed.
We found that the percentage of the hyperbolic households, which were defined by a testing to the householders on psychological rate of discount over times, to the general households are different in Japan (21%) the highest and USA (14%) the lowest with China (16%) and India (17%) in middle range. Hyperbolic household anomalies with higher consumption were confirmed in Japan and India, partially in USA, but not in China. The stronger tracking of consumption to income were confirmed in India in a linear mode and in USA in a non-linear mode but not in Japan, which tracks income less but debts more in a time more or less suffering from the impacts of global financial crisis. The stronger marginal propensity to consume of fixed assets of the hyperbolic householders in USA and India are confirmed in contradiction to the previous researches in Japan and USA. It implies possible systematic increase of propensity and self-control variability under circumstance of financial innovation, which enhances the liquidity of assets and limits the commitment effect of hyperbolic householders.
