On the concavity of the consumption function

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Web1 de mai. de 2024 · If the consumption function in Lemma 1 is concave for arbitrary distribution of (β, R, Y), then u exhibits constant relative risk aversion (CRRA). Conversely, if u is CRRA, then the consumption function of the consumption-saving problem (1) is concave. Proof. Let c, s be the consumption and saving functions. WebDownloadable! 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.

Necessity of Hyperbolic Absolute Risk Aversion for the Concavity …

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 … WebOn the concavity of the consumption function. On the concavity of the consumption function. Miles Kimball. 1995, Research Papers in Economics. Continue Reading … imc hong kong management services limited

An approximate consumption function - Research Papers in …

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 … 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 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 ... list of king henry viii wives in order

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On the Concavity of the Consumption Function with a Quadratic …

WebConcavity of consumption function remains robust under habit formation. • In general, concavity of consumption function is preserved under a weaker condition. • Under … Web1 de out. de 2012 · Our paper is to consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of … list of kingdoms in indiaWeb2 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 … imc hospitals

"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. " - On the concavity of the consumption function

On the concavity of the consumption function

Smooth economic analysis for general spaces of commodities

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 … Web1 de out. de 2012 · Our paper is to consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of …

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Web1 de mar. de 2024 · Download Citation On Mar 1, 2024, Haoyu Liu and others published On the concavity of consumption function under habit formation Find, read and cite … WebThere are locked costs (FC) that contribute until concavity of the cost function. There are also variable costs (VC) welche may be concave, linear alternatively bulbous. If we have on the concave part of VC, total fees (TC) must also …

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. 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 ...

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 … 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 ...

Web1 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 …

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 … list of king of fighters gamesWebWith the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the … list of kings and queens of franceWeb10 de out. de 1998 · Abstract. Zeldes (1989), Carroll (1992,1993), and others have shown that optimal consumption behavior for consumers facing income uncertainty can be … list of kings and queens of england from 1066WebConsumption and saving decisions are at the heart of both short- and long-run macroeconomic analysis (as well as much of microeconomics). ... Carroll and M. S. Kimball, "On the Concavity of the Consumption Function," … im cholecalciferolWebDownload Free PDF. On the Concavity of the Consumption Function Christopher D. Carroll Department of Economics The Johns Hopkins University Baltimore, MD 21218 … imc hiringWeb10 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 … imc homme 2 m 15WebConcavity relates to the rate of change of a function's derivative. A function f f is concave up (or upwards) where the derivative f' f ′ is increasing. This is equivalent to the … list of king of queens episodes wikipedia