Remarks at the Barclays 16th Annual Global Inflation-Linked Conference, New York City.

Remarks at the Barclays 16th Annual Global Inflation-Linked Conference, New York City.

Remarks at the at the Society of American Business Editors and Writers Fall Conference, City University of New York, Graduate School of Journalism, New York City.

A puzzle in consumption theory is the observation of a hump in age-consumption profiles. We study a general equilibrium life-cycle economy with capital in which households include both consumption and leisure in their period utility function. We calibrate the model and find that a significant...