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

被引：5

作者：

Gong, Liutang ^{[1
]}

Zhong, Ruquan ^{[2
]}

Zou, Heng-fu ^{[3
,4
]}

机构：

[1] Peking Univ, Guanghua Sch Management, Beijing 100871, Peoples R China

[2] Chinese Acad Sci, AMSS, Inst Appl Math, Beijing 100190, Peoples R China

[3] Wuhan Univ, Inst Adv Study, Wuhan 430072, Peoples R China

[4] Cent Univ Finance & Econ, CEMA, Beijing 100081, Peoples R China

来源：

ECONOMICS LETTERS | 2012年 / 117卷 / 01期

基金：

中国国家自然科学基金;

关键词：

Consumption function; Concavity; Risk tolerance;

D O I：

10.1016/j.econlet.2012.04.086

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

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. (C) 2012 Elsevier B.V. All rights reserved.

引用

页码：99 / 101

页数：3