Utility Functions, Future Consumption Targets and Subsistence Thresholds
If the consumer’s risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
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Institutional Knowledge at Singapore Management University
2008
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soe_research/1134 https://ink.library.smu.edu.sg/context/soe_research/article/2133/viewcontent/Utilityfunctions.pdf |
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| Institution: | Singapore Management University |
| Language: | English |