In this paper we analyze customer-class price discrimination in the face of uncertain demands. More precisely, we explore the pricing decision of a multiproduct monopoly facing random, correlated demands. We consider only a uniform price for each customer class; multi-part pricing is not...

This paper develops a theoretical model that identifies the relationship between the volatility of private sector wages and growth. The model suggests two distinct channels in which wage volatility affects growth: a positive direct way and a negative indirect way. The direct effect stems from...

We establish general conditions under which younger investors should invest a larger proportion of their wealth in risky assets than older ones. In the finite horizon dynamic setting, we show that such phenomenon, known as time diversification, can occur in the presence of human wealth, target...

Bakshi and Chen (1996a) suggest that the spirit of capitalism affects stock prices by increasing society's aversion to risk. In this paper, I show that the way in which the spirit of capitalism impinges upon asset prices depends upon the interaction of impatience, willingness to substitute over...

Recent research has shown that the "spirit of capitalism"--a preference for wealth itself, in addition to consumption--has important implications for growth and asset pricing. This paper explores how the spirit of capitalism affects saving and consumption behavior. We demonstrate that the spirit...

Empirically, growth rates are negatively correlated with birth rates; they are also correlated with production risk. We argue that these stylized facts are related, and arise jointly from the decision of how many children to have in a risky economic environment.