We examine the dynamic optimization problem for not-for-profit financial institutions (NFPs) that maximize consumer surplus, not profits. We characterize the optimal dynamic policy and find that it involves credit rationing. Interest rates set by mature NFPs will typically be more favorable to...

Despite their scarcity in the literature, an abundance of globally regular indirect utility functions, involving as many parameters as desired, exist and are easily constructed as a function of simple homothetic component utilities.

The difficulty of specifying a set of consumer demand equations that can simultaneously display compatibility with rational economic behaviour (regularity) and have the capacity to represent a comprehensive spectrum of consumer behaviour (flexibility) is well known. A variety of approaches have...

Despite their scarcity in the literature, an abundance of globally regular indirect utility functions, involving as many parameters as desired, exist and are easily constructed as a function of simple homothetic component utilities.