On the concavity of the consumption function

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August undefined, 2024

WebConcavity 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 … 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 …

Econometrica, Vol. 64, No. 4 (July, 1996), 981-992

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 … cineworld unlimited card for children

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Web7 de set. de 2001 · This paper illustrates the natural role that Hellinger processes can play in solving problems from ¯nance. We propose an extension of the concept of Hellinger process applicable to entropy distance and f-divergence distances, where f is a convex logarithmic function or a convex power function with general order q, 0 6= q < 1. These concepts … 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 … 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 … cineworld unlimited card benefits

Why are utility functions typically assumed to be concave?

An approximate consumption function - Research Papers in …

WebThe parameter b governs the degree of concavity of the consumption function. The higher b, the sooner the derivative of approximate consumption function converges to its limit, •. Carroll and Kimball (1996) show that uncertainty reduces consumption for each level of cash-on-hand. So the higher is uncertainty, the larger has to be b. 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 cineworld unlimited card groupsWeb14 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 … cineworld unlimited card for kids

"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 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. " - On the concavity of the consumption function

On the concavity of the consumption function

Consumption and Saving: Theory and Evidence NBER

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 … 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.

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WebConsumption 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," … WebWith the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the …

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 … WebConcavity of consumption function remains robust under habit formation. • In general, concavity of consumption function is preserved under a weaker condition. • Under …

WebDownload Free PDF. On the Concavity of the Consumption Function Christopher D. Carroll Department of Economics The Johns Hopkins University Baltimore, MD 21218 … 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 …

Web10 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 …

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. cineworld unlimited card pricesWebCiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Zeldes (1989), Carroll (1992; 1993), and others have shown that optimal consumption behavior … cineworld unlimited card priceWeb1 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 ... cineworld unlimited card offersWeb10 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 … diagnosing type 2 diabetes in childrenWeb1 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 … cineworld uk crawleyWebOn the concavity of the consumption function. On the concavity of the consumption function. Miles Kimball. 1995, Research Papers in Economics. Continue Reading … cineworld unlimited discountWeb28 de set. de 2024 · Download PDF Abstract: 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 … cineworld unlimited card kids