On the concavity of the consumption function

Author: drib

August undefined, 2024

Webof concavity.4 Concavity of the consumption function is interesting for several reasons. The most important is probably that strict concavity implies that consumption growth … WebOn the concavity of the consumption function. On the concavity of the consumption function. Miles Kimball. 1995, Research Papers in Economics. Continue Reading …

Entropy Free Full-Text The Role of Hellinger Processes in ...

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 … Web27 de set. de 2007 · Later, it will be shown how closely these functions relate to log-utility and how the latter may be regarded as a special case. In particular, the algorithms that are given later will handle all these functions with minimal modification. Their concavity also guarantees that an optimal solution can be found by gradient ascent. 2.2. mpc2801rc マニュアル

On the Concavity of the Consumption Function with a …

Web2 de ago. de 2024 · More or less, yes. Making the right assumption on the shape of the utility function allows you to prove existence or uniqueness of the equilibrium. The exact assumption you need depends on what exactly you are trying to prove and how general you want your result to be. In the case of concavity, it also makes the equilibrium easier to … Webfunction, but until now there has been no analytical explanation for the concavity of the consumption function that income uncertainty seemed to induce. The idea that the consumption function is concave is an old one, dating at least to the origin of Keynesian macroeconomics: The General Theory of Employment, Interest, and Money emphasized … WebWe show that if labor income is stochastic, the consumption function will be concave for many commonly used utility functions, and if both labor income and capital income are stochastic, the consumption function is concave for an even broader group of utility … mpc3003 ドライバ

On the Concavity of the Consumption Function

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. 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 … mpc2802 スペックWebOn the Concavity of Consumption Function under Habit Formation⋆ Haoyu Liua,∗ aGuanghua School of Management, Peking University, 5 Yiheyuan Road, Haidian … mpc2802 ドライバー

"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. " - On the concavity of the consumption function

On the concavity of the consumption function

Consumption with liquidity constraints: An analytical characterization

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 … WebI. On the Concavity of the Consumption Function Unfortunately, the theoretical conditions un-der which an economy composed of many in-dividuals will behave exactly as though it contains a single representative agent ("exact aggregation holds") are very stringent. The most problematic requirement is that consumers

Did you know?

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. Websharing function ensues in a straightforward way. Then, parametric global concavity tests are applied against global parametric alternatives. 2 Framework When modeling household consumption behaviour, collective rationnality is a reasonnable assumption to make (Chiappori, 1988; Apps and Rees, 1988; Chiappori and Ekeland, 2006). Rank tests, realized

Web30 de dez. de 2024 · On the Concavity of the Consumption Function with a Quadratic Utility under Liquidity Constraints (2024) Theoretical Economics Letters ... Web14 de jan. de 2014 · Carroll (1992; 1993) 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 consumption function will be concave. We show that if labor income is stochastic, ...

Web1 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 ... Web18 de nov. de 2024 · This paper studies the concavity of the consumption function of a habit-forming consumer with convex absolute risk tolerance. Habit formation is …

WebOn the Concavity of the Consumption Function. Christopher Carroll and Miles Kimball. Econometrica, 1996, vol. 64, issue 4, 981-92. Date: 1996. References: Add references at …

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 ... mpc2802 ドライバダウンロードWebWe consider an optimal investment problem to maximize expected utility of the terminal wealth, in an illiquid market with search frictions and transaction costs. In the market model, an investor’s attempt of transaction is successful only at arrival times of a Poisson process, and the investor pays proportional transaction costs when the transaction is successful. … mpc3000 ドライバーダウンロードWebconcavity of the consumption function in the context of infinite horizon, when consumer’s utility is quadratic. Taking a different approach to Carroll and Kimball [2], we directly … mpc3003rc トナーWebConcavity of consumption function remains robust under habit formation. • In general, concavity of consumption function is preserved under a weaker condition. • Under … mpc3003rc ドライバダウンロード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 … mpc3003 ドライバーダウンロードWeb1 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 … mpc2800 ドライバダウンロード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 … mpc3004 ドライバダウンロード