In this paper, we consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the conclusion of...

In this paper, we consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the conclusion of...

In this paper, we have studies the effects of macroeconomic policies on foreign asset accumulation in a wealth effect model used by Bardhan (1967), Kurz (1968), Calvo (1980) and Blanchard (1983). Our results differ dramatically from the ones in Obstfeld (1981). In particular, we have shown that...

In this paper, we study risk-taking, fiscal policies, and asset pricing in a stochastic model of growth with non-expected utility function and the spirit of capitalism. With specific assumptions on the production technology, preferences, and stochastic shocks, we derive the explicit solutions to...

This paper extends Matsuyama's (2006) 0-1 endogenous-retirement choice in the second period to a framework with a continuous-endogenous-retirement choice to study consumption-saving decision and capital accumulation in an overlapping-generations model. The existence of the steady state is shown,...

In this paper, we study the effects of fiscal policies on economy in a stochastic model with hyperbolic discounting rate. With specific assumptions on the production technology, preferences, and stochastic shocks, we derive the explicit solutions to the growth rates of consumption and savings...

This paper examines the effects of government debt and deficit, income tax, and public investment on economy in a endogenous growth model with finite-horizon, the spirit of capitalism, and government expenditure. It shows that with the increasing of the spirit of capitalism and life horizon (the...

This article uses the <italic>Z</italic>-transform to develop a method for solving the linearised multidimensional discrete-time systems, which can be used to discuss the effects of policies on economy (including the welfare gains and initial effects on economy) raised by multi-sector...

This paper presents an infinite-horizon model of optimal capital accumulation with the social-status concern and the cash-in-advance constraint. When the cash-in-advance constraint applies to both consumption and investment, money is not superneutral. If only consumption is subject to the...