Search Results - subject:"intertemporal consumption"

Why Are Saving Rates of Urban Households in China Rising?

Chamon, Marcos; Prasad, Eswar - International Monetary Fund (IMF) - 2008

From 1995 to 2005, the average urban household saving rate in China rose by 7 percentage points, to Â¼ of disposable income. We use household-level data to explain the postponing of consumption despite rapid income growth. Tracing cohorts over time indicates virtually no consumption smoothing...

Persistent link: https://www.econbiz.de/10011123886

Intertemporal Asset Allocation with Habit Formation in Preferences: An Approximate Analytical Solution

Pedersen, Thomas Q. - School of Economics and Management, University of Aarhus - 2008

In this paper we derive an approximate analytical solution to the optimal consumption and portfolio choice problem of an infinitely-lived investor with power utility defined over the difference between consumption and an external habit. The investor is assumed to have access to two tradable...

Persistent link: https://www.econbiz.de/10005114115

Optimal consumption choice with intolerance for declining standard of living

Riedel, Frank - 2007

Duesenberry introduced the notion of a ratchet investor who does not tolerate any decline in her consumption rate. We connect the demand behavior of such an agent to the behavior of standard time-additive agents. A ratchet investor demands the running maximum of the optimal plan a conventional...

Persistent link: https://www.econbiz.de/10009452529

Optimal consumption choice with intolerance for declining standard of living

Riedel, Frank - 2007

Persistent link: https://www.econbiz.de/10010272563

More about economic and non-economic determinants of (mutual) trust and trustworthiness

Sell, Friedrich L. - 2007

trustor and trustee. This aspect is visualized within the two-person optimal intertemporal consumption choice model …

Persistent link: https://www.econbiz.de/10010300417

Optimal consumption choice with intolerance for declining standard of living

Riedel, Frank - Institut für Mathematische Wirtschaftsforschung, … - 2007

Persistent link: https://www.econbiz.de/10005002262

Unique Solutions of Some Recursive Equations in Economic Dynamics

Marinacci, Massimo; Montrucchio, Luigi - Collegio Carlo Alberto, Università degli Studi di Torino - 2007

We study unique and globally attracting solutions of a general nonlinear equation that has as special cases some recursive equations widely used in Economics.

Persistent link: https://www.econbiz.de/10005765467

Incomplete Intertemporal Consumption Smoothing and Incomplete Risksharing

Asdrubali, Pierfederico; Kim, Soyoung - Institute of Economic Research, Korea University - 2007

This paper develops a method to estimate jointly the degree of intertemporal consumption smoothing and the degree of … assumption on the degree of intertemporal consumption smoothing, the degree of risksharing within a country is larger than across … countries; 2) the degree of intertemporal consumption smoothing within a country is also larger than across countries; 3) The …

Persistent link: https://www.econbiz.de/10005739767

Capacity Expansion in Markets with Intertemporal Consumption Externalities

Kitamura, Hiroshi - Graduate School of Economics, Osaka University - 2007

This paper analyzes market capacity expansion in the presence of intertemporal consumption externalities such as …

Persistent link: https://www.econbiz.de/10005710070

The forgone gains of incomplete portfolios

Paiella, Monica - Banca d'Italia - 2007

This paper proposes a test for the cost-based explanation of non-participation, by estimating a lower bound to the forgone gains of incomplete portfolios; these are in turn a lower bound to the costs that could rationalize non-participation in financial markets: high bounds would imply...

Persistent link: https://www.econbiz.de/10005113553