The standard approach to modelling consumption/saving problems is to assume that the decisionmaker is solving a dynamic … stochastic optimization problem However under realistic descriptions of utility and uncertainty the optimal consumption/saving …

women) can help explain measurable outcomes such as marriage formation, intra-marriage distribution of consumption goods …

We develop a tractable continuous-time consumption-savings model for a liquidity-constrained agent who faces both … permanent and transitory income shocks under incomplete markets. We derive an explicitly-solved consumption function and show …-temporal substitution have very different effects on savings and the dispersions of wealth and consumption …

Consumption is the largest component of GDP. Since the 1950s, the life cycle and the permanent income models have … constituted the main analytical tools to the study of consumption behaviour, both at the micro and at the aggregate level. Since … the literature to estimate preferences is the lack of a ‘consumption function’. A challenge for future research is to use …