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We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular … exponential discounting for their collective investment decisions even if all agents discount exponentially.We also exhibit …
Persistent link: https://www.econbiz.de/10011507695
We examine the investment decision problem of a group whose members have heterogeneous time preferences. In particular … exponential discounting for their collective investment decisions even if all agents discount exponentially.We also exhibit …
Persistent link: https://www.econbiz.de/10001750827
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Modern consumer theories are built upon the premise of the forward looking behavior of households. While most of the empirical studies at micro level are based on Euler equation, there have been few to estimate the household consumption function and test the implication of forward looking...
Persistent link: https://www.econbiz.de/10011539196
When finding the optimal consumption and investment decision rules of an individual, accounting for a change in the … sufficiently large habit formation lead to a hump-shaped consumption pattern and a decreasing investment into the risky asset, as …
Persistent link: https://www.econbiz.de/10013022558