4To our knowledge, the only comparable paper is Braun, Constantinides, and Ferson (1993) (henceforth BCF), who estimate a habit formation model using data on total personal consumption expenditures for six countries. BCF find evidence for stickiness in aggregate consumption growth data in most countries. Their estimates of the habit persistence coefficient range between 0.57 and 0.93, but are often insignificant. Their paper also does not test the assumption of habit formation against alternative models of consumption dynamics, such as the Campbell–Mankiw model. Ferson and Constantinides (1991) report in a framework closely related to BCF that the evidence for habit formation seems stronger in the U.S. data than in their international dataset. However, both papers use GMM to estimate a nonlinear Euler equation, a method which is not robust to the presence of substantial measurement error in consumption data.