Strict concavity of the value function for a family of dynamic accumulation models.

We prove the strict concavity of the value function for liquidity-constrained saving or storage models with possibly responsive effort, possibly unbounded marginal utility, and i.i.d. disturbances. Thus we furnish a foundation for empirical estimation of homogeneous Markov processes for consumption,or marginal value.

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Year of publication:	2008
Authors:	Bobenrieth, Eugenio ; Bobenrieth, Juan ; Wright, Brian
Institutions:	Departamento de Economía, Facultad de Ciencias Económicas y Administrativas
Subject:	: Consumption \| saving \| strict concavity \| value function

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 02-2008
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008545803