The effect of interest rates on consumption in an income fluctuation problem

DOI10.1016/j.jedc.2018.07.004zbMath1402.91265OpenAlexW2883267212WikidataQ129494016 ScholiaQ129494016MaRDI QIDQ1624480

Bar Light, Ehud Lehrer

Publication date: 16 November 2018

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2018.07.004

zbMATH Keywords

dynamicsinterest ratesconsumptionsavingsincome fluctuation problem

Mathematics Subject Classification ID

Interest rates, asset pricing, etc. (stochastic models) (91G30) Consumer behavior, demand theory (91B42)

Related Items

Uniqueness of equilibrium in a Bewley-Aiyagari model ⋮ The family of alpha,[a,b stochastic orders: risk vs. expected value] ⋮ A theory of the saving rate of the rich ⋮ The invariant distribution of wealth and employment status in a small open economy with precautionary savings ⋮ A short memory version of the Vasicek model and evaluating European options on zero-coupon bonds ⋮ Asymptotic linearity of consumption functions and computational efficiency ⋮ Stochastic Comparative Statics in Markov Decision Processes

Cites Work

• Unnamed Item
• Unnamed Item
• The risk-free rate in heterogeneous-agent incomplete-insurance economies
• A nonsmooth approach to envelope theorems
• The wealth distribution in Bewley economies with capital income risk
• The permanent income hypothesis: A theoretical formulation
• Some results on An income fluctuation problem
• Huggett economies with multiple stationary equilibria
• On the existence and uniqueness of stationary equilibrium in Bewley economies with production
• Solving the income fluctuation problem with unbounded rewards
• A qualitative approach to Markovian equilibrium in infinite horizon economies with capital
• Consumption Growth, the Interest Rate and Aggregation
• On the Differentiability of the Value Function in Dynamic Models of Economics
• Stochastic Monotonicity and Stationary Distributions for Dynamic Economies
• Distributional Comparative Statics
• RECURSIVE EQUILIBRIA IN AN AIYAGARI‐STYLE ECONOMY WITH PERMANENT INCOME SHOCKS
• On the Concavity of the Consumption Function
• Precautionary Savings and the Permanent Income Hypothesis
• Discounted Dynamic Programming

This page was built for publication: The effect of interest rates on consumption in an income fluctuation problem