This paper integrates two strands of studies on consumer demand and consumption and provides a unified framework for analyzing consumer behavior employing an intertemporal two-stage budgeting procedure. We take a modified AIDS framework for the demand system and derive a general Euler equation...

This paper develops a production-based model for analyzing a role of asset trade in pooling risks among countries and provides new evidence for the international consumption-output puzzle and risk sharing among countries. Efficient risk sharing rules among countries are the same as the...

The present paper presents a generalised class of cost functions suitable for aggregation of firms and considers various flexible functional forms to assess whether they possess desirable aggregation properties. This set of cost functions includes two output functions and subsumes linear and...