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Consumption and habit formation when time horizon is finite

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Author Info
Angelini, Viola

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Abstract

This paper provides a closed-form solution under labour uncertainty for optimal consumption and the value function in a finite horizon life-cycle model with habit persistence.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4VT5TGS-1/2/cb0b688239c8e570bc12869b123d18c3
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 103 (2009)
Issue (Month): 2 (May)
Pages: 113-116
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Handle: RePEc:eee:ecolet:v:103:y:2009:i:2:p:113-116

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Related research
Keywords: Habit formation Life-cycle consumption Precautionary saving;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alessie, R. & Teppa, F., 2002. "Saving and habit formation: : evidence from Dutch panel data," Discussion Paper 62, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Viola Angelini & Peter Simmons, . "Housing Debt, Employment Risk and Consumption," Discussion Papers 05/07, Department of Economics, University of York. [Downloadable!]
  3. Caballero, Ricardo J, 1991. "Earnings Uncertainty and Aggregate Wealth Accumulation," American Economic Review, American Economic Association, vol. 81(4), pages 859-71, September. [Downloadable!] (restricted)
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This page was last updated on 2009-12-12.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.