Utility functions, future consumption targets and subsistence thresholds

If the consumer's 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:	2008-11-02
Authors:	Guha, Brishti ; Guha, Ashok
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 4.2008, 30, p. 1-4
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Classification:	D9 - Intertemporal Choice and Growth ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629938