Average consumer decisions in an economy with heterogeneous subjective discount rates and risk aversion coefficients: The finite horizon case

Alfredo Omar Palafox-Roca, Francisco Venegas-martinez

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

This paper aims to study the behavior of the average rational consumer of an economy populated by heterogeneous agents in a finite horizon framework, Heterogeneity takes into account both the subjective discount rate and risk aversion coefficient. Closed-form solutions for the optimal paths of consumption and capital, of the average consumer. are derived. Moreover, a closed form solution for the economic welfare of the average consumer is obtained.

Original languageEnglish
Pages (from-to)842-849
Number of pages8
JournalEconomics Bulletin
Volume34
Issue number2
StatePublished - 2014

Fingerprint

Dive into the research topics of 'Average consumer decisions in an economy with heterogeneous subjective discount rates and risk aversion coefficients: The finite horizon case'. Together they form a unique fingerprint.

Cite this