This paper develops a neoclassical growth model under the assumption of comprehensive habits that incorporate both consumption and labour supply decisions of the households. We show that in presence of comprehensive habits, households will supply more labour than in case of no habits. In...

The present study intends to develop a framework for a new consumption theory that is pertinent to the economy in the age of artificial intelligence and robots. In the new framework, besides the monetary budget constraint, there are also temporal, spatial and physiological constraints on an...

This article considers non-unitary models of household behavior. These models suppose explicitly that households consist of a number of different members with preferences that are different from each other. They can be split up into two principal categories: cooperative (or collective) models,...

This article considers non-unitary models of household behavior. These models suppose explicitly that households consist of a number of different members with preferences that are different from each other. They can be split up into two principal categories: cooperative (or collective) models,...

Households enjoy utility from activities that require a combination of time and goods. We classify activities into two types: luxuries and necessities. Luxuries (necessities) are activities for which time and expenditure shares rise (decline) with income. We develop and estimate a model with...

In Chiappori's (1988) collective model of labor supply hours of work are supposed flexible. In many countries, however, male labor supply does not vary much. In that case, the husband's labor supply is no longer informative about the household decision process and individual preferences. To...

We study consumption and welfare inequality by analyzing how households allocate resources - market expenditures and the value of time - to the production of activities. The share of resources allocated to an activity rises or falls with wages, classifying them into luxuries or necessities,...

The economic path we are currently on, which focuses on extreme materialism and overconsumption, is leading us to destruction. It is not sustainable and is destroying the true values that result in a healthy and happy society. After the financial meltdown of 2008, it is becoming very obvious...

In this paper we present a classroom exercise where students can solve the basic two-period consumer choice model using the Excel-Solver, and explore the main features of the model. We also include a static comparative analysis and a borrowing constraint in the optimization problem

This paper develops an alternative approach for demand estimation. Taking willingness to pay as model primitive, it establishes a general and yet analytically simple demand function, and proposes an estimation procedure that uses survey to solicit consumers' willingness to pay with which the...