We develop a Neo-Classical growth model with habit formation to exhibit an equilibrium non-linear relationship between aggregate consumption growth and income growth. We provide empirical evidence consistent with this relationship both for the U.S. and France, and we estimate this non-linear...

In this note the author discusses the problem of updating forecasts in a time-discrete forecasting model when information arrives between the current period and the next period. To use the information that arrives between two periods, he assumes that the process between two periods can be...