How does future income affect present discretionary spending : the role of future self-continuity

Schanbacher, A, Faro, D and Botti, S (2016) How does future income affect present discretionary spending : the role of future self-continuity. [Conference proceeding]

Abstract

How do future income changes affect present discretionary spending? We found that consumers were less likely to spend when anticipating an income decrease but were not more likely to spend when anticipating an increase. However, consumers expecting an income increase were more likely to spend when future self-continuity was enhanced.