Duesenberry introduced the notion of a ratchet investor who does not tolerate any decline in her consumption rate. We connect the demand behavior of such an agent to the behavior of standard time–additive agents. A ratchet investor demands the running maximum of the optimal plan a conventional time–additive investor with lower initial wealth would choose. JEL subject classification. D91

Abstract In this article, we use a laboratory experiment to study the effects of relational contracts on market efficiency in environments with different degrees contract enforceability and competition. By exogenously varying communication protocol, create that are more personal or impersonal. On one hand, improve by promoting trust coordination. other impersonal increase facilitating severance...

I estimate the effects of collaborative and adversarial intergroup contact. randomly assigned Indian men from different castes to participate in cricket leagues or serve as a control group. League players faced variation contact, through random assignment homogeneous-caste mixed-caste teams, opponents. Collaborative contact increases cross-caste friendships efficiency trade, reduces own-caste f...

This paper demonstrates the important link between the incomes and wealth of pensioners and their working-life earnings levels. It uses the combination of detailed income and asset information and working-life history information available in the British Household Panel Survey. The proportionality predicted by a simple “stripped down” form of the life-cycle model is supported for pensioner coup...

In the present paper, the issue of the existence of optimal barter steady states is addressed in a stationary overlapping generations model with many commodities and many different long-lived consumers. A general characterization of the individual endowments leading to an optimal barter steady state is obtained. The result, which is a generalization of Benveniste and Cass (1986), is obtained as...

This paper analyzes the relationships between the values and dispersion of residential properties and the environmental-health quality of their locations. It constructs residents’ health-adjusted lifetime-utility function by combining satisfaction from consumption over the lifespan with risk to life from living in an environmentally unhealthy location. It employs this utility function to analyz...

In the paper is presented an analysis and optimization of standardized sub-apertural grinding process used in serial production asphericon s.r.o. The monitored parameter was depth subsurface damage surface microroughness. Tested were five processes, which automatically generated by internal system, for different diamond grit sizes (D151, D91, D64, D30, D15). For evaluation defected layer modifi...

We examine the impact of retirement exibility and the constraint against borrowing from future labor income on optimal consumption, optimal investment, and optimal retirement policy. We solve three alternative models almost explicitly in parametric forms (up to at most a constant) and provide veri cation theorems for the claimed solutions. In addition, we also obtain analytical comparative stat...