Achury, Carolina; Hubar, Sylwia; Koulovatianos, Christos - In: Review of Economic Dynamics 15 (2012) 1, pp. 108-126
We analytically show that a common across rich/poor individuals Stone-Geary utility function with subsistence consumption in the context of a simple two-asset portfolio-choice model is capable of qualitatively and quantitatively explaining: (i) the higher saving rates of the rich, (ii) the...