Luo, Yulei; Smith, William T.; Zou, Heng-fu - In: Annals of Economics and Finance 10 (2009) 2, pp. 281-301
In a recent paper [Luo, Smith, and Zou (2009)] we showed that the spirit of capitalism could in theory resolve the two fundamental anomalies of modern consumption theory, excess sensitivity and excess smoothness. However, that basic model could not plausibly explain the empirical magnitude of...