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Studies of micro-level price datasets find more frequent small price increases than decreases, which can be explained by consumer inattention because time-constrained shoppers might ignore small price changes. Recent empirical studies of the link between shopping behavior and price attention...
Persistent link: https://www.econbiz.de/10015418051
To analyze the opioid epidemic, we construct a model where individuals, with and without pain, choose whether to misuse opioids knowing the probabilities of addiction and dying. These odds are functions of opioid use. Markov chains are estimated from the US data for the college and non–college...
Persistent link: https://www.econbiz.de/10014048609
The current study points out that the derivation of the aggregate demand curve based on theory of consumer behavior has a fundamental flaw, from which the Giffen product has to be inferior good and has been always regarded as an exception of law of demand is therefore not convincing. The current...
Persistent link: https://www.econbiz.de/10014203372
We study a continuous-time model of consumption and portfolio selection with the stochastic investment opportunity and the credit constraints endogenously determined in the business cycle modeled by the regime switch. By using the martingale approach and transformation into optimal stopping...
Persistent link: https://www.econbiz.de/10012913077
We study a continuous-time model of consumption and portfolio selection with limited commitment in a stochastic environment. The credit constraints of a household are determined endogenously in the credit market where creditors know that the household is not committed to payment of debt. By...
Persistent link: https://www.econbiz.de/10012904475
There is widespread evidence that monetary policy exerts asymmetric effects on output over contractions and expansions in economic activity, while price responses display no sizeable asymmetry. To rationalize these facts we develop a dynamic general equilibrium model where households' utility...
Persistent link: https://www.econbiz.de/10013097931
Amidst the recent resurgence of inflation, this paper investigates the interplay of corporate profits and income distribution in shaping inflation and aggregate demand within the New Keynesian framework. We derive a novel analytical condition for profits to be procyclical and inflationary....
Persistent link: https://www.econbiz.de/10014337850
We explore the dynamics of demand for n designs of a good when agents have preferences for (anti-)conformity. Agents differ in their social status and each agent seeks to imitate those of higher status and to distinguish herself from those of lower status, relative to her own status. In each...
Persistent link: https://www.econbiz.de/10012853696
The recent housing boom and bust in the United States was marked by large differences in the run-up and the subsequent decline of the housing prices both across metro areas and across market segments in the same area. One common observation in many metro areas is that the low-tier S&P...
Persistent link: https://www.econbiz.de/10013008227
The fraction of unemployed households with revolving credit more than tripled between the late 1970s and the early 1990s, and new evidence suggests that close to 20% of unemployed households use revolving credit to replace lost income while as much as 40% default in response to job loss....
Persistent link: https://www.econbiz.de/10013077483