Browsing Department of Economics by Subject "JEL Classification Number: D91"

Now showing items 1-5 of 5

    • Consumption smoothing and the equity premium 
      Eden, Benjamin (Vanderbilt University, 2010)
      Abstract: The paper investigates the role of the Intertemporal Elasticity of Substitution () in determining the equity premium. This is done in an overlapping generations economy populated by agents that live for 2 periods ...
    • Overconfidence and Consumption over the Life Cycle' 
      Caliendo, Frank; Huang, Kevin X.D. (Vanderbilt University, 2007)
      Overconfidence is a widely documented phenomenon. In this paper, we study the implications of consumer overconfidence in a life-cycle consumption/saving model. Our main analytical result is a necessary and sufficient ...
    • Rationalizing Seven Consumption-Saving Puzzles in a Unified Framework' 
      Huang, Kevin X.D.; Caliendo, Frank (Vanderbilt University, 2007)
      Empirical evidence suggests that it may cost time, effort, and resources to properly implement a saving plan, though such cost may differ across individual consumers. We document seven facts on macroeconomic consumption ...
    • Substitution, Risk Aversion and Asset Prices: An Expected Utility Approach 
      Eden, Benjamin (Vanderbilt University, 2008)
      The standard power utility function is widely used to explain asset prices. It assumes that the coefficient of relative risk aversion is the inverse of the elasticity of substitution. Here I use the Kihlstrom and Mirman ...
    • Temptation and Self-Control: Some Evidence and Applications 
      Huang, Kevin X.D.; Liu, Zheng; Zhu, John Q. (Vanderbilt University, 2007)
      This paper studies the empirical relevance of temptation and self-control using household-level data from the Consumer Expenditure Survey. We construct an infinite-horizon consumption-savings model that allows, but does ...