Utility functions, future consumption targets and subsistence thresholds

If the consumers risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.

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Year of publication:	2008-01
Authors:	Guha, Ashok ; Guha, Brishti
Institutions:	East Asian Bureau of Economic Research (EABER)
Subject:	Intertemporal Consumer Choice \| theories of consumption \| risk aversion coefficient

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Extent:	application/pdf
Series:	Microeconomics Working Papers.
Type of publication:	Book / Working Paper
Classification:	D11 - Consumer Economics: Theory ; D10 - Household Behavior and Family Economics. General ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009365364