American Economic Review
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Опубликовано на портале: 02-11-2007
Andrew B. Abel
American Economic Review.
1990.
Vol. 80.
No. 2.
P. 38-42.
This paper introduces a utility function that nests three classes of utility functions: (1) time-separable utility functions; (2) "catching up with the Joneses" utility functions that depend on the consumer's level of consumption relative to the lagged cross-sectional average level of consumption; and (3) utility functions that display habit formation. Closed-form solutions for equilibrium asset prices are derived under the assumption that consumption growth is i.i.d. The equity premia under catching up with the Joneses and under habit formation are, for some parameter values, as large as the historically observed equity premium in the United States


Опубликовано на портале: 02-11-2007
Christopher D. Carroll, Jody Overkand, David N. Weil
American Economic Review.
2000.
Vol. 90.
No. 3.
P. 341-55.
Saving and growth are strongly positively correlated across countries. Recent
empirical evidence suggests that this correlation holds largely because high growth
leads to high saving, not the other way around. This evidence is difficult to reconcile
with standard growth models, since forward-looking consumers with standard
utility should save less in a fast-growing economy because they know they will be
richer in the future than they are today. We show that if utility depends partly
on how consumption compares to a ‘habit stock’ determined by past consumption,
an otherwise-standard growth model can imply that increases in growth can cause
increased saving

