Both habit persistence and rigidity are basic important characteristic of consumer behavior.Household can receive utility not only from consumption but also from save. The quantity of utility received by household is not determined by the level of current consumption and save, but is determinedby the growth quantity of beth current consumption and save relative to their habit-formation levels.According to the characteristics of consumer behavior, this paper constructs a new utility function for household-increment utility function, and derives a new consumption function by optimum of consumer behavior. Using the Chinese data, the empirical study shows that the new consumption function is fitted well with consumer behavior.
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