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Author : CIRANO.
Publisher : Montréal : CIRANO
ISBN 13 :
Total Pages : 11 pages
Book Rating : 4.:/5 (466 download)
Download or read book Consumption with Liquidity Constraints and Habit Formation written by CIRANO. and published by Montréal : CIRANO. This book was released on 2000 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Enrichetta Ravina
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Download or read book Habit Formation and Keeping Up with the Joneses written by Enrichetta Ravina and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides evidence of habit persistence in household consumption choices. I find that the strength of external habit, captured by the fraction of the consumption of the reference group that enters the utility function, is 0.290, and the strength of internal habit, represented by household past consumption, is 0.503. The results are robust to controlling for various measures of economic activity, tests for the presence of aggregate shocks, liquidity constraints, precautionary saving motives, and learning. Aggregation of the Euler equations as a weighted average of individual marginal rates of substitution accounts for heterogeneity and market incompleteness and preserves the results.
Author : Raquel Carrasco
Publisher :
ISBN 13 :
Total Pages : 50 pages
Book Rating : 4.X/5 (4 download)
Download or read book Consumption and Habits written by Raquel Carrasco and published by . This book was released on 2002 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Fischer Black
Publisher :
ISBN 13 :
Total Pages : 36 pages
Book Rating : 4.3/5 ( download)
Download or read book Mean Reversion and Consumption Smoothing written by Fischer Black and published by . This book was released on 1989 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a simple conventional model with additive separable utility and constant elasticity, we can explain mean reversion and consumption smoothing. The model uses the price of risk and wealth as state variables, but has only one stochastic variable. The price of risk rises temporarily as wealth falls. We also distinguish between risk aversion and the consumption elasticity of marginal utility. We can use the model to match estimates of the average values of consumption volatility, wealth volatility, mean reversion, the growth rate of consumption, the real interest rate, and the market risk premium.
Author : Bahman Angoshtari
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Download or read book Optimal Investment and Consumption Under a Habit-Formation Constraint written by Bahman Angoshtari and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Francisco Gomes
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.:/5 (129 download)
Download or read book Portfolio Choice with Internal Habit Formation written by Francisco Gomes and published by . This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Motivated by the success of internal habit formation preferences in explaining asset pricing puzzles, we introduce these preferences in a life-cycle model of consumption and portfolio choice with liquidity constraints, undiversifiable labor income risk and stock-market participation costs. In contrast to the initial motivation, we find that the model is not able to simultaneously match two very important stylized facts: A low stock market participation rate, and moderate equity holdings for those households that do invest in stocks. Habit formation increases wealth accumulation because the intertemporal consumption smoothing motive is stronger. As a result, households start participating in the stock market very early in life, and invest their portfolios almost fully in stocks. Therefore, we conclude that, with respect to its ability to match the empirical evidence on asset allocation behavior, the internal habit formation model is dominated by its time-separable utility counterpart.
Author : Ayman Hindy
Publisher : Forgotten Books
ISBN 13 : 9780656508983
Total Pages : 58 pages
Book Rating : 4.5/5 (89 download)
Download or read book Optimal Consumption and Portfolio Rules With Durability and Habit Formation (Classic Reprint) written by Ayman Hindy and published by Forgotten Books. This book was released on 2018-03 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Optimal Consumption and Portfolio Rules With Durability and Habit Formation We entertain three different economic ideas in three different interpretations of the model specified in and In one interpretation, preferences given by (1) exhibit the notions of local substitution and habit formation. Agents with such preferences treat consumptions at adjacent dates as close substitutes and consumptions at distant dates as complements. In a second interpretation, the model represents habit forming preferences over the service flows from irreversible purchases of a durable good that decays over time. In the third interpretation, the model represents preferences for consumption of a dual purpose commodity that provides the agent with two sources of utility. The two components of such a composite good, however, have different half - lives. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Author : HwaJung Choi
Publisher :
ISBN 13 :
Total Pages : 31 pages
Book Rating : 4.:/5 (13 download)
Download or read book Liquidity Constraints, the Extended Family, and Consumption written by HwaJung Choi and published by . This book was released on 2015 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether the extended family influences consumption. Extending prior tests on food consumption to total consumption, little to no evidence is found in support of altruism among related households and or that fluctuations in dynastic income affects one's own consumption. However, the effect of transitory fluctuations in own income on consumption are contingent on own wealth and the wealth of the extended family, with estimates of the marginal propensity to consume roughly three times higher for individuals whose own and extended family wealth is low versus individuals whose own and extended family wealth is high.
Author : Christopher D. Carroll
Publisher :
ISBN 13 :
Total Pages : 33 pages
Book Rating : 4.:/5 (129 download)
Download or read book A theory of the consumption function, with and without liquidity constraints written by Christopher D. Carroll and published by . This book was released on 2001 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Servaas van Bilsen
Publisher :
ISBN 13 :
Total Pages : 51 pages
Book Rating : 4.:/5 (13 download)
Download or read book Consumption and Portfolio Choice Under Internal Multiplicative Habit Formation written by Servaas van Bilsen and published by . This book was released on 2018 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores the optimal consumption and investment behavior of an individual who derives utility from the ratio between his consumption and an endogenous habit. We obtain closed-form policies under general utility functionals and stochastic investment opportunities, by developing a non-trivial linearization to the budget constraint. This enables us to explicitly characterize how habit formation a ffects the marginal propensity to consume and optimal stock-bond investments. We also show that in a setting which combines habit formation with Epstein-Zin utility, consumption no longer grows at unrealistically high rates at high ages and investments in risky assets decrease.
Author : Martin Blomhoff Holm
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (13 download)
Download or read book Consumption with Liquidity Constraints written by Martin Blomhoff Holm and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: How do liquidity constraints affect households? This is a well-researched subject with remarkably few theoretical results. This paper bridges this gap by providing a closed form expression for consumption with liquidity constraints for a wide class of utility functions (HARA). Using this expression, I prove that the consumption function is strictly concave in wealth if a relevant liquidity constraint exists. Moreover, households respond to a tightening of the liquidity constraint by reducing consumption, becoming more sensitive to wealth changes, and having a ”more” concave consumption function in wealth. These results thus provide theoretical underpinnings for how contractions in credit supply affect households.
Author : Amit Vijay Bhandari
Publisher :
ISBN 13 :
Total Pages : 151 pages
Book Rating : 4.:/5 (931 download)
Download or read book The Impact of Consumption and Liquidity Constraints on Optimal Consumption and Investment Decisions written by Amit Vijay Bhandari and published by . This book was released on 2008 with total page 151 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Rob Alessie
Publisher :
ISBN 13 :
Total Pages : 8 pages
Book Rating : 4.:/5 (656 download)
Download or read book The Effects of Liquidity Constraints on Consumption written by Rob Alessie and published by . This book was released on 1989 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Geetha Vaidyanathan, 1960-
Publisher :
ISBN 13 :
Total Pages : 528 pages
Book Rating : 4.:/5 (265 download)
Download or read book Consumption and Liquidity Constraints written by Geetha Vaidyanathan, 1960- and published by . This book was released on 1991 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Raymond J. Quinlan
Publisher :
ISBN 13 :
Total Pages : 176 pages
Book Rating : 4.:/5 (163 download)
Download or read book Household Consumption and Liquidity Constraints written by Raymond J. Quinlan and published by . This book was released on 2007 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Sahra Wagenknecht
Publisher : Campus Verlag
ISBN 13 : 3593399164
Total Pages : 329 pages
Book Rating : 4.5/5 (933 download)
Download or read book The Limits of Choice written by Sahra Wagenknecht and published by Campus Verlag. This book was released on 2013-10-02 with total page 329 pages. Available in PDF, EPUB and Kindle. Book excerpt: In The Limits of Choice, Sahra Wagenknecht examines household saving decisions and basic needs in Germany and the United States, based on official data from both countries from the 1950s to present day. Arguing against the hypothesis that assumes consumers optimize their consumption intertemporally based exclusively on their permanent or lifetime income, Wagenknecht proposes a rule of thumb, according to which consumers will save if their current income exceeds basic expenditure, while they will demand credit when income can no longer meet basic needs.
Author : Rob Alessie
Publisher :
ISBN 13 :
Total Pages : 18 pages
Book Rating : 4.:/5 (65 download)
Download or read book Consumption, Leisure and Earnings-related Liquidity Constraints written by Rob Alessie and published by . This book was released on 1987 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
