A micro-analytic threshold model for the timing of first purchases of durable goods

Sudeep Haldar and Vithala Rao

Applied Economics, 1998, vol. 30, issue 7, 959-974

Abstract: A micro-analytic threshold model to describe the timing of household purchases of consumer durable goods is developed and tested. The model incorporates unobserved heterogeneity via a generalized gamma distribution and accounts for time varying covariates. Further, we employ estimation methods applicable or purchase data observed at periodic intervals of time. The model outperforms other competing models for predicting the timing of purchase of durable goods in terms of fit and predictive ability. In particular, this model outperforms the logit model and the diffusion model. The generalized gamma timing model predicts well the time to purchase the durable good; we show how it can be employed for micro-segmentation of households. Several research directions and applications are described.

Date: 1998
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000368498325390 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:30:y:1998:i:7:p:959-974

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/000368498325390

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().