Excerpt from An Empirical Investigation of Asset Pricing With Temporally Dependent Preference Specifications A goal of this paper is to try to sort out the importance of all of these different effects. In studying these issues I investigated a model in which consumption is locally substitutable. I modeled this by assuming that the consumption good is durable. Habit was modeled as developing over the flow of services from the consumption good and, as a result, habit over consumption itself develops much more slowly. I was careful to take account of the fact that observed consumption is time averaged. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.