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Utility functions, future consumption targets and subsistence thresholds

Author

Listed:
  • Brishti Guha

    (School of Economics, Singapore Management University)

  • Ashok S. Guha

    (Indian Statistical Institute, India)

Abstract

If the consumer’s risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.

Suggested Citation

  • Brishti Guha & Ashok S. Guha, 2008. "Utility functions, future consumption targets and subsistence thresholds," Working Papers 16-2008, Singapore Management University, School of Economics.
    • Handle: RePEc:siu:wpaper:16-2008
    as

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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D10 - Microeconomics - - Household Behavior - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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