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New iterative separable programming techniques based on two-segment, piecewise-linear approximations are described for … the minimization of convex separable functions over convex sets. These techniques have two advantages over traditional … separable programming methods. The first is that they do not require the cumbersome "fine grid" approximations employed to …
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This paper considers several alternative explanations for the fact that households with higher levels of lifetime income ( the rich') have higher lifetime saving rates (Dynan, Skinner, and Zeldes (1996); Lillard and Karoly (1997)). The paper argues that the saving behavior of the richest...
Persistent link: https://www.econbiz.de/10005829534
We examine how moral sanctions and rewards, notably the moral sentiments involving feelings of guilt and virtue, would be employed to govern individuals' behavior if the objective were to maximize social welfare. In our model, we analyze how the optimal use of guilt and virtue is influenced by...
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This paper provides an in-depth review and analysis of household portfolios in Japan. (1) Using both aggregate and disaggregate data, it is shown that the shares of equities in household financial wealth have been decreasing throughout the 1990s. Stock market participations of Japanese...
Persistent link: https://www.econbiz.de/10005830718
Individual time discounting behaviour experimentally exhibits important anomalies that are inconsistent with the standard discounted utility model. These include the time preference reversal characteristic of hyperbolic discounting, the magnitude effect and the extreme sign effect. I propose a...
Persistent link: https://www.econbiz.de/10009201008