Download or read book The Intertemporal Allocation of Consumption written by Orazio P. Attanasio and published by . This book was released on 1994 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Liquidity constraints and, more generally, imperfections in credit markets, can be extremely important for the intertemporal allocation of consumption and have received a substantial amount of attention in the theoretical and empirical literature on consumption. In the first part of the paper I review the reasons why liquidity constraints are important. Unfortunately, for several reasons, it is not easy to test for the presence of liquidity constraints. Aggregation issues preclude the use of aggregate time series data for such a purpose. Tests based on micro data, however, are complicated by some serious identification problems. If a simple equilibrium model does not fit some data set, one can change the assumptions about the opportunity set available to the economic agents or the specification of their preferences. For instance, empirical evidence that detects excess sensitivity of consumption to income could be explained by liquidity constraints or by non separability between consumption and leisure. However, the available evidence shows that it is possible to find flexible specifications of preferences that fit consumption movements at business cycle frequencies. I also present some simulation evidence that shows that for many plausible parameter configurations, liquidity constraints are likely to be relevant only for a few economic agents. In the last part of the paper I present some new evidence on the relevance of liquidity constraints based on debt holding data. The data indicate that the demand for debt of individuals more likely to be liquidity constrained is less elastic to changes in the interest rate.

Download or read book The sensitivity of test of the intertemporal allocation of consumption to near rational alternatives written by John H. Cochrane and published by . This book was released on 1988 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Sensitivity of Tests of the Intertemporal Allocation of Consumption to Near rational Alternatives written by John Howland Cochrane and published by . This book was released on 1988 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents calculations of the utility cost to consumers of following alternative decision rules in the environments specified by tests of the intertemporal allocation of consumption on aggregate data. The alternatives include excess and inadequate sensitivity to income and interest rate changes and ignoring information. The calculations find that the costs of large deviations from the optimal decision rule--consumption equal to current income, for example--are on the order of l cent to $1 per quarter. They are interpreted to suggest that the theory does not make predictions that are robust to small inaccuracies of modeling, including small costs of transactions and information, and that those small costs can account for rejections of the theory as it is applied to aggregate US data

Download or read book Intertemporal Allocation of Consumption Savings and Leisure written by M. N. Darrough and published by . This book was released on 1975 with total page 398 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Sensitivity of Tests of the Intertemporal Allocation of Consumption to Near rational Alternatives written by and published by . This book was released on 1988 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Intertemporal Allocation of Consumption and Leisure written by Leon Bettendorf and published by . This book was released on 1991 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On the Intertemporal Allocation of Consumption Mortality and Life history Strategies written by Junji Kageyama and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Intertemporal Allocation of Consumption and Labour Force Participation in Life cycle Models written by Gabriella Berloffa and published by . This book was released on 1997 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumption and saving models of intertemporal allocation and their implications for public policy written by Orazio P. Attanasio and published by . This book was released on 2010 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a critical survey of the large literature on the life cycle model of consumption, both from an empirical and a theoretical point of view. It discusses several approaches that have been taken in the literature to bring the model to the data, their empirical successes and failures. Finally, the paper reviews a number of changes to the standard life cycle model that could help solve the remaining empirical puzzles.

Download or read book An Econometric Analysis of the Household s Intertemporal Allocation Under Additive Preferences written by Roger R. Betancourt and published by . This book was released on 1970 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Intertemporal Model of Consumption and Portfolio Allocation written by Hans Andersson and published by . This book was released on 1995 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Intertemporal consumption allocation under uncertainty and rational expectations written by Edgar Weissenberger and published by . This book was released on 1984 with total page 398 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Intertemporal and Intratemporal Household Consumption Allocation written by Martin Beznoska and published by . This book was released on 2013 with total page 161 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Intertemporal Model of Consumption and Portfolio Allocation written by Buddhavarapu Sailesh Ramamurtie and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop an infinite time horizon, continuous time model of portfolio choice and consumption allocation for an investor seeking to maximize the expected utility of his life-time consumption. In this model, the investor is endowed with capital that can be invested in long-lived capital assets and has, in addition, a stochastic stream of cash flows that could be interpreted as either a wage income stream or a stochastic endowment flow. We obtain a complete and original solution to the consumption-portfolio choice problem for the negative exponential and quadratic utility functions and special case solutions for the general power and log utility functions. The results obtained in this paper have significant implications for the theory of asset prices, the theory of mutual funds, optimal portfolio strategies of investors, and so forth. The results of the model can also be easily extended to one with a finite time horizon.

Download or read book Inter temporal Optimal Consumption saving Allocation Under Uncertainty written by Moses Osaruyi Odaro and published by . This book was released on 1939 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Intertemporal Consumption Choices Transaction Costs and Limited Participation to Financial Markets written by Orazio P. Attanasio and published by . This book was released on 2007 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper builds a unifying framework that, within the theory of intertemporal consumption choices, brings together the limited participation -based explanation of the poor empirical performance of the C-CAPM and the transaction costs-based explanation of incomplete portfolios. Using the implications of the consumption model and observed household consumption and portfolio choices, we identify the preference parameters of interest and a lower bound for the costs rationalizing non-participation in financial markets, in the presence of unobserved heterogeneity in tastes for consumption and portfolio allocation. Using the US Consumer Expenditure Survey and assuming isoelastic preferences, we estimate the coefficient of relative risk aversion at 1.7 and a cost bound of 0.4 percent of non-durable consumption. Our estimate of the preference parameter is theoretically plausible and the bound sufficiently small to be likely to be exceeded by the actual total (observable and unobservable) costs of participating to financial markets.

Download or read book Handbook of Computable General Equilibrium Modeling written by Peter B. Dixon and published by Newnes. This book was released on 2013-11-14 with total page 1143 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this collection of 17 articles, top scholars synthesize and analyze scholarship on this widely used tool of policy analysis, setting forth its accomplishments, difficulties, and means of implementation. Though CGE modeling does not play a prominent role in top US graduate schools, it is employed universally in the development of economic policy. This collection is particularly important because it presents a history of modeling applications and examines competing points of view. - Presents coherent summaries of CGE theories that inform major model types - Covers the construction of CGE databases, model solving, and computer-assisted interpretation of results - Shows how CGE modeling has made a contribution to economic policy