purchase value. We model a retiree as a utility-maximizing economic agent who can invest in a financial market with a risky and … incomplete market utility maximization problem via duality arguments and obtain semi-analytical solutions. We find that the …

finite horizon economy. Utility from anticipation of future consumption makes consumers patient. Furthermore, in general, it …

utility functions are not concave-shaped but S-shaped. We justify the S shape using consumption-based asset pricing. We show … that various consumption-based asset pricing puzzles arise from the global concavity of the utility functions, and the S …-shaped consumption utility offers a solution. Also, the S-shaped utility helps explain the low elasticity of intertemporal substitution …