stochastic optimization problem However under realistic descriptions of utility and uncertainty the optimal consumption/saving …The standard approach to modelling consumption/saving problems is to assume that the decisionmaker is solving a dynamic …

two-period consumption and savings model for a loss-averse agent who measures utilityfrom consumption relative to a … of the return on saving. We find non-linearity in the fractionof wealth saved, where the specific saving pattern depends … on the sign of the real return on savings. The amount of saving is nondecreasing in initial wealth and the riskiness of …

consumption choice as well as on economic growth is ambiguous as it affects the mean as well as the variance of disposable income …

In this paper the impacts of income and consumption taxes are analyzed within a model of stochastic endogenous growth … with congestion. It is shown that the optimal amount of governmental input diminishes with uncertainty and that the optimal …

ascribed to the specific int eraction of consumption and portfolio choice in the determination of growth and welfare. …

environmental preferences and uncertainty on optimal financing is ambiguous. …

stochastic pollution tax, which is uncorrelated with the technological uncertainty of pollution, is compared with a pure … uncertainty associated with pollution leads to an increase in abatement activities and therefore supports the corresponding …