We reformulate neoclassical consumer choice by focusing on γ, the marginal utility of money. As the opportunity cost of current expenditure, γ is approximated by the slope of the indirect utility function of the continuation. We argue that γ can largely supplant the role of an arbitrary...

Using an endogenous growth model where the discount rate is a function of consumption, we show that the condition in which the elasticity of the marginal utility of consumption is greater than one ensures, at the same time, the existence of an unique saddle point equilibrium and the maximization...