On the Concavity of the Consumption Function with a Quadratic Utility under Liquidity Constraints
AbstractThis paper demonstrates the concavity of the consumption function of infinitely living households under liquidity constraints who are not prudent - i.e. with a quadratic utility. The concavity of the consumption function is closely related to the 3-convexity of the value function.
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Bibliographic InfoPaper provided by Graduate School of Economics and Management, Tohoku University in its series TERG Discussion Papers with number 274.
Length: 10 pages
Date of creation: Sep 2011
Date of revision:
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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.:
- Angus Deaton, 1989.
"Saving and Liquidity Constraints,"
NBER Working Papers
3196, National Bureau of Economic Research, Inc.
- Gong, Liutang & Zhong, Ruquan & Zou, Heng-fu, 2012.
"On the concavity of the consumption function with the time varying discount rate,"
Elsevier, vol. 117(1), pages 99-101.
- Liutang Gong & Ruquan Zhong & Heng-fu Zou, 2012. "On the concavity of the consumption function with the time varying discount rate," CEMA Working Papers 559, China Economics and Management Academy, Central University of Finance and Economics.
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