Hand-to-mouth consumers, rule-of-thumb savers, and optimal control
نویسندگان
چکیده
منابع مشابه
Temptation, Commitment, and Hand-to-Mouth Consumers∗
20% of U.S. households are “wealthy hand-to-mouth” who hold only illiquid assets. But why should they do so, since higher-yielding liquid assets are available? To rationalize this behavior, we build a life-cycle model with non-standard preferences: households are tempted to consume their liquid assets, and therefore purchase housing as a savings commitment device. As a result, they choose to be...
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In this paper, we want to determine what percentage of Iranian households doesn’t act according to the Permanent Income Hypothesis (PIH), the so called hand-to-mouth consumers are, that consume 100% of their current income. For this mean, we have used three models. In the first model, we applied Constant Relative Risk Aversion (CRRA) preferences. In the second, preferences includes the habits o...
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This paper studies the determinacy properties of monetary and fiscal policy rules in a small-scale New Keynesian model. We modify the standard model in two ways. First, we allow positive public debt in the steady state as in Leeper [Journal of Monetary Economics 27, 129–147 (1991)]. Second, we add rule-of-thumb consumers as in Bilbiie [Journal of Economic Theory 140, 162–196 (2008)]. Leeper stu...
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ژورنال
عنوان ژورنال: Journal of Economic Interaction and Coordination
سال: 2020
ISSN: 1860-711X,1860-7128
DOI: 10.1007/s11403-020-00292-4