On the concavity of the consumption function with the time varying discount rate

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 117
Issue: 1
Pages: 99-101

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we consider a finite-horizon model with the time-additive utility and the time varying discount rate. With the assumption of the concavity of absolute risk tolerance, the concavity of the consumption function has been proved. This result significantly broadens the conclusion of Carroll and Kimball (1996) for the case of the HARA utility function.

Technical Details

RePEc Handle
repec:eee:ecolet:v:117:y:2012:i:1:p:99-101
Journal Field
General
Author Count
3
Added to Database
2026-01-25