Mental simulations such as anticipatory and/or retrospective emotions can yield higher weight for a delayed consequence than for current well-being (i.e., negative devaluing). In this research we investigate the behavioral and welfare implications of negative devaluing for intertemporal...

This paper investigates the effects of anticipatory feelings on patience and the resulting intertemporal choices in finite horizon economy. Utility from anticipation of future consumption makes consumers patient. Furthermore, in general, it makes them more/less patient for near future choices...

Over the last 15 years, the typical household has increasingly concentrated its spending on a few preferred products. However, this is not driven by "superstar'' products capturing larger market shares. Instead, households increasingly purchase different products from each other. As a result,...

We develop a method to fi nd approximate solutions, and their accuracy, to consumption-investment problems with isoelastic preferences and in nite horizon, in incomplete markets where state variables follow a multivariate di ffusion. We construct upper and lower contractions, fi ctitious...

Over the last 15 years, the typical household has increasingly concentrated its spending on a few preferred products. However, this is not driven by “superstar” products capturing larger market shares. Instead, households increasingly purchase different products from each other. As a result,...

Did the financial crisis spread from distressed banks to households through a contraction of the credit supply? We study this question with a dataset that contains observations on all accounts in Danish banks as well as comprehensive information about individual account holders and banks. We...

How does fat consumption influence the consumption of companion foods such as bread? Adult restaurant goers who were randomly given olive oil for their bread used 26% more oil on each piece of bread compared to those who were given block butter, but they ended up eating 23% less bread in total....

Scientific evidence on the effect of sugar consumption on obesity has propelled policy makers in several states across the U.S. to propose the imposition of a tax on soft drinks sales. In this paper, we look at the effect of two tax events: a 5.5% sales tax on soft drinks imposed by the state of...

Did the financial crisis spread from distressed banks to households through a contraction of the credit supply? We study this question with a dataset that contains observations on all accounts in Danish banks as well as comprehensive information about account holders and banks. We show that...