We use mean-field game theory to quantitatively compare two unemployment insurance (UI) extension policies commonly used during recessions: raising benefit levels versus extending the duration of benefits. Our heterogenous-agent model features costly job search and individual savings. Our...

We formulate an infinite-horizon optimal investment and consumption problem, in which an individual forms a habit based on the exponentially weighted average of her past consumption rate, and in which she invests in a Black-Scholes market. The individual is constrained to consume at a rate...

We formulate and solve a deterministic optimal consumption problem to maximize the discounted CRRA utility of an individual’s consumption-to-habit process assuming she only invests in a riskless market and that she is unwilling to consume at a rate below a certain proportion α∈(0, 1] of her...