search query: @author Dybvig, P. / total: 3
reference: 2 / 3
| Author: | Dybvig, P. |
| Title: | Duesenberry's ratcheting of consumption: optimal dynamic consumption and investment given intolerance for any decline in standard of living |
| Journal: | Review of Economic Studies
1995 : APR, VOL. 62:2(211), p. 287-314 |
| Index terms: | CONSUMPTION DYNAMIC MODELS INVESTMENT |
| Language: | eng |
| Abstract: | Dueseberry's ratcheting consumption demand is derived as a feature of the optimal dynamic consumption and investment policy given extreme habit formation that prevents consumption from falling over time. Preferences are in effect non-time-separable extended-real-valued von Neumann-Morgenstern preferences. Consumption increases each time wealth reaches a new maximum. Risky investment is proportional to the excess of wealth over the perpetuity value of current consumption. |
SCIMA