who save but do not participate in the stock market will increase their consumption, thereby reducing saving and capital …

equilibrium used in macroeconomics characterizes both the savings-consumption decision and the investment decision, or … standard macroeconomic models: consumption depends on wealth, investment on Tobin's q. Equilibrium is maintained by the …, does not allow separation of the savings decisions of agents from the investment decisions of firms. Investment is …

convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of …. Social Security can potentially affect national saving and investment, though in the long run, it does not affect the price …

We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …

redundant asset and would have no effect on consumption or national saving. In this paper, consumers have different (publicly … aggregate consumption of young consumers in the steady state; the steady state national capital stock can either increase or …

For a firm that cannot raise external funds, cash on hand serves as precautionary saving. We derive a closed …

volume of investment. Its application to the United States economy and the economies of other major OECD nations suggests …