In a discounted one-sector convex model of optimal economic growth where utility may depend on both consumption and capital stock, I derive necessary and sufficient conditions for sustained growth (unbounded expansion of capital and consumption). Conditions for bounded growth and extinction are also outlined. Optimal paths may be non-monotone. Sustained growth may occur even though the asymptot...

This paper proposes foundations and a methodology for survey-based tracking of well-being. First, we develop a theory in which utility depends on "fundamental aspects" of well-being, measurable with surveys. Second, drawing from psychologists, philosophers, and economists, we compile a comprehensive list of such aspects. Third, we demonstrate our proposed method for estimating the aspects' rela...

Commitment to the behaviorist approach utility theory, usefulness of mathematics in economic analysis, and equalization marginal income as a principle just taxation brought Irving Fisher Ragnar Frisch attempt measure led them collaborate forming Econometric Society sponsoring establishment Cowles Commission, institutions advancing theory connection statistics, pioneer an axiomatic microeconomic...

Crime has high social costs. The criminal justice system is costly, imprisonments have negative effects on labor force participation, and the pain for victims is significant for most types of crime. Criminal behavior is related to marginal costs and marginal utility that go beyond deterrence and punishment. Economic theory suggests that some policies, for example improved labor market opportuni...

This paper studies the equity premium implications of a canonical New Keynesian model with investment. We find that the presence of a time-varying marginal cost dampens the expansionary impact of a positive technology shock. With a given fraction of firms standing ready to satisfy demand at predetermined prices, the variations in the marginal utility of consumption attributed to technology shoc...

Markov chain Monte Carlo (MCMC) methods, while facilitating the solution of many complex problems in Bayesian inference, are not currently well adapted to the problem of marginal maximum a posteriori (MMAP) estimation, especially when the number of parameters is large. We present here a simple and novel MCMC strategy, called State-Augmentation for Marginal Estimation (SAME), which leads to MMAP...

This paper analyzes the effects of frequency visits to Japan on eating Japanese food among Shanghai residents. The estimated results indicate that effect fourth visit was largest for food. Although spreading consumption strong up Japan, it suggested marginal utility may have diminished after time as respondents became accustomed visiting Japan.

According to the conventional theory, rebates are but one of many ways to price discriminate among consumers. The firm sells at the shelf price to those willing to pay more for the product and at a lower, rebated price, to those willing to pay less, achieving the necessary separation by relying on the higher costs of redeeming rebates of high willingness-to-pay consumers. This theory, however, ...

This paper studies a class of one-dimensional screening problems where the agent’s utility function does not satisfy the Spence-Mirrlees condition (SMC). The strength of the SMC for hidden information problems is to provide a full characterization of implementable contracts using only the local incentive compatibility (IC) constraints. These constraints are equivalent to the monotonicity of the...