We propose a model of parental altruism in relation to children’s habit formation, as children are unaware of their developing habits while young and only become cognizant with age. We show that an altruistic mother (1) maintains the amount of income transferred to her child lower than the...

Unlike the standard assumption that the degree of impatience, measured by the rate of time preference, is increasing in wealth, empirical studies support that impatience is marginally decreasing. By introducing decreasing marginal impatience into the neoclassical monetary growth model a la...

Economic interdependence of heterogeneous habit forming consumers is examined by using a two-country model. Due to endogenous interest rate adjustments, consumption-habit dynamics in one country are affected by the other country's habits and preferences. To characterize the interactive dynamics,...

By using a two-country model with habit-forming consumers, this paper shows that the transfer paradox can take place in the free-trade, dynamically-stable world economy. When the debtor is more habituated to consumption than the creditor, an income transfer from the creditor to the debtor raises...

Incorporating weakly nonseparable preferences into the familiar time-preference model, the author emphasizes a role of steady-state welfare changes in determining the effect of permanent tariffs on the current account. The effect consists of a welfare effect, due to steady-state welfare changes,...

Part I Intergenerational Interactions -- 1 An equilibrium model of child maltreatment (Akabayashi).-2 Tough Love and Intergenerational Altruism (Bhatt, Ogaki) -- Part II Behavioral Macroeconomics.-3 Consumer interdependence via reference groups (Hayakawa, Venieris, Yiannis) -- 4 Bounded...

Part I Attitude toward Risk and Time -- 1 Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam (Tanaka, Camerer, Nguyen) -- 2 Simultaneous Measurement of Time and Risk Preferences: Stated Preference Discrete Choice Modeling Analysis Depending on Smoking Behavior...

1 The Paradox of Self-Destructive Choices -- 2 Varying Impatience -- 3 Hyperbolic discounting and Self-Destructive Behaviors -- 4 Self-Control Problems Of The Dual Self -- 5 Overborrowing, Overeating and Addictive Behavior -- 6 Coping with Self-Destructive Behavior.