We study the effects of envy (relative consumption concerns), drawing on evidence that preferences typically exhibit present bias. We employ a Ramseytype model with agents who differ in initial capital endowments and account for present-biased envy: agents are naive and care about how their...

The Rwandan government emphasizes the role of cooperatives in transforming rural economies from subsistence farming to diversified commercial agriculture, including high-value export horticultural crops. The success of these cooperatives depends significantly on farmers' willingness to join and...

This paper estimates the elasticity of intertemporal substitution for the euro area. It leverages the unique design of the Consumer Expectations Survey in Europe to directly infer it from the Euler equation. Our final estimates range between 0.7 and 0.8 for the euro area as a whole, which are...

This paper introduces the random discounted expected utility (RDEU) model, which we have developed as a means to deal with heterogeneous risk and time preferences. The RDEU model provides an explicit linkage between preference and choice heterogeneity. We prove it has solid comparative statics,...