This paper revisits Ernst Engel's (1857) original article in which he systematically investigated the relationship between consumption expenditure and income. While he is mainly remembered today for the discovery of Engel's law, we highlight how Engel addressed in a particular way the issue of...

The utility-maximizing consumption and investment strategy of an individual investor receiving an unspanned labor income stream seems impossible to find in closed form and very difficult to find using numerical solution techniques. We suggest an easy procedure for finding a specific, simple, and...

"Consumption expenditures by households in the United States acccount for about 70% of America's GDP. The primary focus in this book is on how households adjust these expenditures in response to changes in prices and income." -- Back cover