The paper presents the properties of money demand implied by the Frenkel-Jovanovic (1980) inventory model. Without approximation, the money demand function is implicitly defined by the first-order condition of the model. From the implicit function, we show that the elasticities of money demand...

A pervasive phenomenon in developing countries is that self-prescribed medications are purchased from drug vendors without professional supervision. In this article we develop a model of self-medicating behavior of a utility-maximizing consumer who balances the benefits and risks of...

The effect of increased life expectancy on retirement age is ambiguous because a change in the survival probability is analogous to a change in intertemporal prices. It is shown that the decision to retire earlier or later depends on the old-age saving behavior. Early retirement could emerge if...

This paper demonstrates, using the Reflection Pri nciple, the existence and uniqueness of the solution to the classic Solow equati on under continuous time uncertainty for the class of strictly concave productio n functions which are continuously differentiable on the nonnegative real number s....