In this paper the effects on aggregate consumption of changes in the age distribution of the population are analysed empirically. Economic theories predict that age influences individuals’ saving and consumption behaviour. Despite this, age structure effects are rarely controlled for in...

The implications of assuming that it is commonly known that players consider only admissible best responses are investigated. Within a states-of-the-world model where a state, for each player, determines a startegy set rather than a strategy the concept of fully permissible sets is defined