Showing 1 - 10 of 18
Persistent link: https://www.econbiz.de/10005774185
In the absence of monetary superneutrality, inflation affects capital accumulation and the demand for real balances. This paper derives the combination of monetary end lump-sum fiscal policy which maximizes the sum of discounted utilities of representative consumers in present and future...
Persistent link: https://www.econbiz.de/10005774189
In the absence of monetary superneutrality, inflation affects capital accumulation and the demand for real balances. This paper derives the combination of monetary end lump-sum fiscal policy which maximizes the sum of discounted utilities of representative consumers in present and future...
Persistent link: https://www.econbiz.de/10005618227
This paper derives simple closed-form solutions for expected rates of return on stocks and riskless one-period bills under the assumption that shocks to the growth rates of consumption and dividends are generated by a Markov regime-switching process. These closed-form solutions are used to show...
Persistent link: https://www.econbiz.de/10005618276
Persistent link: https://www.econbiz.de/10005618321
This paper analyzes the joy of giving bequest motive in which the utility obtained from leaving a bequest depends only on the size of the bequest. It exploits the fact that this formulation can be interpreted as a reduced form of an altruistic bequest motive to derive a relation between the...
Persistent link: https://www.econbiz.de/10005474483
The Ricardian Equivalence Theorem, which is the proposition that changes in the timing of lump-sum taxes have no effect on consumption or capital accumulation, depends on the existence of operative altruistic motives for intergenerational transfers. These transfers can be bequests from parents...
Persistent link: https://www.econbiz.de/10005474533
Various tax policies provide consumers with forms of insurance. Social security has the payoff characteristics of an annuity. Income tax provides consumers with a degree of income insurance because the government shares part of the individual’s income risk. Redistributive taxes can be used to...
Persistent link: https://www.econbiz.de/10005656835
Persistent link: https://www.econbiz.de/10005656882
This paper introduces a utility function that nests three classes of utility functions: (1) time-separable utility functions; (2) "catching up with the Joneses" utility functions that depend on the consumer’s level of consumption relative to the lagged cross-sectional average level of...
Persistent link: https://www.econbiz.de/10005656926