We illustrate how natural resource dependent and isolated communities manage their forest stock. Our model is based on field observations of the Eaglewood trade in Papua New Guinea. Using a dynamic model of household utility maximization and simulations, we analyze the impact of variations in the (monopsonistic) resource price on the households’ consumption choices and their allocation of effor...

In the cross-section of households, the portfolio share rises in wealth and has a non-decreasing age profile. The standard life-cycle model with homothetic utility and non-tradable labor income has the counterfactual implication that the portfolio share falls in both wealth and age. We develop a life-cycle model in which households have nonhomothetic utility over two types of consumption goods,...

Preferences and endowments. Consider a static endowment economy populated by a continuum of households. The households have identical preferences expressed by a strictly increasing strictly concave utility function U(c) over a single consumption good. The households have heterogeneous endowments y ∈ [0,∞) of this single consumption good distributed with density f(y) > 0 in the population. Let Y...

In [1], households are assumed to supply labor inelastically in each time period t, so there is no labor/leisure “choice”; the only argument of the household utility function at each time point t is amounts of a single produced consumption good (or a scalar index for “real” consumption). In contrast, in [2] the household utility function has two arguments in each time period t: (i) (produced) g...

This study focuses on the factors influencing consumer’s decision in fish consumption in Erzurum Province of Turkey. The data were obtained from 384 households who live in urban areas of Erzurum Province in 2012. The sample size of the study was determined by Unclustered Proportional Sampling Method. Analytic Hierarchy Process (AHP) was used to determine the most suitable type of fish for house...

Endogeneous Household Interaction Most econometric models of intrahousehold behavior assume that household decisionmaking is efficient, i.e., utility realizations lie on the Pareto frontier. In this paper we investigate this claim by adding a number of participation constraints to the household allocation problem. Short-run constraints ensure that each spouse obtains a utility level at least eq...

We estimate a collective time allocation model, where Dutch, Surinamese/Antillean and Turkish households behave as if both spouses maximize a household utility function. We assume that paid labor and housework are the endogenous choice variables and furthermore consider household production. Surinamese/Antillean and Turkish women differ from Dutch women because they value (joint) household prod...

We study Markov-perfect Nash equilibria (MPNE) of a Ramsey-Cass-Koopmans economy in which households are aware of their influence on prices. The Ramsey conjecture fails to hold such that households other than the most patient one own positive wealth in the steady state. This confirms results that have been derived in the same model using an openloop equilibrium concept. In contrast to the compe...