The feedback and the autoregressive closed form solution of the consumption function, with the income process allowed to follow a general ARIMA stochastic process, for the quadratic, exponential and Weil's hybrid exponential-isoelastic utility functions are compared. For the exponential and...

This paper analyzes the borrowing behavior of a small open economy of a Less Developed Country (LDC) that relies heavily on imports for its capital formation and faces an upward sloping supply function of foreign loans, in an environment where decision makers face uncertainty about the longevity...