The discounting of future felicity flows transposes to the intertemporal optimization context the assumption of interest-bearing wealth or savings. The validity of the hypothesis has been challenged by several empirical (ir)regularities and by the theoretical implications for human decision...

On Simple Conditions for Mixed Equilibria in Dualistic Models. Part I: Degree of Mobility

On Simple Conditions for Mixed Equilibria in Dualistic Models. Part II: Degree of Coverage

The contemporary version of the dynamic Ramsey problem omits expectations of a household’s initial lump-sum wealth taxation due to policy revision; therefore, the attainable resource allocation set in this problem is ill-defined. This omission leads to misleading conclusions about the optimal...