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 … WebNOTES. 1 For the concavity of the consumption function generated by prudence, see Carroll and Kimball [4].. 2 Uncertainty in rate-of-return or labor income can be easily introduced in the model set-up, but will not alter the main implication. Indeed, since the very message of this paper is the concavity of consumption function under deterministic …
Consumption Function: Formula, Assumptions, and Implications
WebCarroll and Kimball (1996) prove that the consumption function is concave if infinitely-lived risk-averse households have a utility function which exhibits Hyperbolic Absolute Risk Aversion (HARA), face income uncertainty, and are prudent. However, the empirical evidence is inconclusive about the importance of income uncertainty for households. WebThe ultimate goal is to define the social equilibrium set which will be the main object of study of this paper. 2.1 Commodity space and consumption space The commodity space will be any Banach lattice B equipped with a norm k · k, and with a partial order ≥ . The consumption set will be B+ = {x ∈ B : x ≥ 0}, the positive cone of B. news headlines 1976
Requiem for the Representative Consumer? Aggregate Implications …
Web30 de dez. de 2024 · On the Concavity of the Consumption Function with a Quadratic Utility under Liquidity Constraints (2024) Theoretical Economics Letters ... 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 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. 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 ... news headlines 1979