Feigenbaum, James; Gahramanov, Emin; Tang, Xueli - In: Journal of Economic Behavior & Organization 93 (2013) C, pp. 116-140
pecuniary externalities. Absent institutional constraints like prices and budgets, the optimal consumption rule would have … annuitize, the growth rate of marginal utility will be the discount rate minus the interest rate, resulting in a consumption … profile that is too flat. Accidental bequests transfer wealth from the old to the young, steepening the consumption profile …