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Utility functions, future consumption targets and subsistence thresholds

Author

Listed:
  • Brishti Guha

    (School of Economics, Singapore Management University)

  • Ashok S. Guha

    (Indian Statistical Institute, India)

Abstract

If the consumer’s risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.

Suggested Citation

  • Brishti Guha & Ashok S. Guha, 2008. "Utility functions, future consumption targets and subsistence thresholds," Working Papers 16-2008, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:16-2008
    as

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    File URL: https://mercury.smu.edu.sg/rsrchpubupload/13990/Utilityfunctions.pdf
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    References listed on IDEAS

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    1. Dalgaard, Carl-Johan & Strulik, Holger, 2007. "A Bioeconomic Foundation of the Malthusian Equilibrium: Body Size and Population Size in the Long-Run," Hannover Economic Papers (HEP) dp-373, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
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    3. Ben-David, Dan, 1998. "Convergence clubs and subsistence economies," Journal of Development Economics, Elsevier, vol. 55(1), pages 155-171, February.
    4. Guha Brishti & Guha Ashok S, 2008. "Target Saving in an Overlapping Generations Model," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-26, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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