Bobenrieth, Eugenio; Bobenrieth, Juan; Wright, Brian - Departamento de Economía, Facultad de Ciencias … - 2008
We prove the strict concavity of the value function for liquidity-constrained saving or storage models with possibly responsive effort, possibly unbounded marginal utility, and i.i.d. disturbances. Thus we furnish a foundation for empirical estimation of homogeneous Markov processes for...