On the concavity of the consumption function
Webcient for the concavity of consumption functions in general consumption-saving problems. This paper shows that HARA is necessary, implying the concavity of consumption is not a robust prediction outside the HARA class. Keywords: concavity, consumption function, hyperbolic absolute risk aversion, robust predictions. JEL … Webliquidity constraints generate a concavity in the consumption function. However, ana-lytics of the concavity due to liquidity constraints has remained unknown until recently. Carroll and Kimball (2001) made the –rst important attempt in setting an analytical foundation and showed the concavity of the consumption function when the …
On the concavity of the consumption function
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Web1 de set. de 2024 · In this paper we provide a novel family of stochastic orders that generalizes second order stochastic dominance, which we call the α, [a, b]-concave stochastic orders.These stochastic orders are generated by a novel set of “very” concave functions where α parameterizes the degree of concavity. The α, [a, b]-concave … Web10 de mar. de 1995 · On the Concavity of the Consumption Function with a Quadratic Utility under Liquidity Constraints. Shin’ichi Nishiyama, R. Kato. Economics. 2012. This …
http://repec.org/sce2006/up.5384.1139946134.pdf Web1 de jan. de 2012 · PDF On Jan 1, 2012, Shin-Ichi Nishiyama published On the Concavity of the Consumption Function with a Quadratic Utility under Liquidity Constraints Find, read and cite all the research you ...
Web28 de set. de 2024 · Carroll (1992) observes that many of the differences can be attributed to the concavity of the consumption function under uncertainty, but he does not … WebCiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Zeldes (1989), Carroll (1992; 1993), and others have shown that optimal consumption behavior …
Web28 de jul. de 2024 · Consumption Function: The consumption function, or Keynesian consumption function, is an economic formula representing the functional relationship between total consumption and gross national ...
WebDownloadable (with restrictions)! Carroll and Kimball (1996) have shown that, in the class of utility functions that are strictly increasing, strictly concave, and have nonnegative third derivatives, hyperbolic absolute risk aversion (HARA) is sufficient for the concavity of consumption functions in general consumption-saving problems. This paper shows … marine water monitoringWeb1 de jun. de 2024 · Contrary to the results of a standard consumption-saving model with time-separable utility, we show that the consumer’s consumption function can be convex when young and becomes concave when old. These results advance our understanding of the (non-)concavity of consumption function when preferences are not time-separable. nature\\u0027s best photography windland smith riceWeb1 de dez. de 2024 · Carroll (1992) observes that many of the differences can be attributed to the concavity of the consumption function under uncertainty, but he does not describe the conditions under which the ... nature\\u0027s best photography smithsonianWebDownloadable! This paper demonstrates the concavity of the consumption function of infinitely living households under liquidity constraints who are not prudent - i.e. with a quadratic utility. The concavity of the consumption function is closely related to the 3-convexity of the value function. nature\u0027s best poultry feedWebConcavity of consumption function remains robust under habit formation. • In general, concavity of consumption function is preserved under a weaker condition. • Under … nature\\u0027s best plant based proteinWeb1 de out. de 2012 · Carroll (1992) observes that many of the differences can be attributed to the concavity of the consumption function under uncertainty, but he does not describe … marine water maker pricesWebWith the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the … nature\u0027s best photography smithsonian