Consumers often face choice settings in which alternatives are discrete. Examples include choices between variants of differentiated products, modes of urban transportation, residential locations, etc. In this paper compensated price elasticities and a corresponding(aggregate) Slutsky equation...

We propose a tractable dynamic framework for the joint determination of optimal consumption, portfolio choice, and healthcare irreversible investment. Our model is based on a Merton's portfolio and consumption problem, where, in addition, the agent can choose the time at which undertaking a...

The Japanese Consumer Price Index (CPI) is considered to be upwardly biased.This paper estimated the Engel curve based on National Survey of Family Incomeand Expenditure data to measure the bias. The estimated bias for the period 1989to 2004 was 0.53 percentage points per annum. Correcting the...

In this study, we investigate an optimal consumption and investment problem of an economic agent who faces a welfare constraint; the agent does not accept her expected utility (continuation value) falls below a certain fixed level regardless of the time and state. This optimization problem...

"Since the Reform and Opening up, China's economy has maintained a high annual growth rate of 9.72%, which is called 'China's miracle'. At the same time, the stability of economic growth has been gradually improved. According to Lin Jianhao and Wang Jinmei (2013), China's economy has entered a...