In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker`s influence, while the reemployment chance is directly affected by search effort. We characterize the worker`s optimal savings and jobsearch...

This paper analyzes sin goods consumption when individuals exhibit present-focused preferences. It considers three types of present focus: present-bias with varying degrees of naiveté, Gul-Pesendorfer preferences, and a dual-self approach. We investigate the incentives to deviate from healthy...