The observed hump-shaped life-cycle pattern in individuals' consumption cannot be explained by the classical consumption-savings model. We explicitly solve a model with utility of both consumption and leisure and with educational decisions affecting future wages. We show optimal consumption is...

Universities and public research organisations play a vital role not only in the generation of new technological knowledge, but also in its diffusion. We analyse four East German local networks of innovators which differ in structure and innovative performance and investigate the characteristic...