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Brishti Guha and Ashok Guha
''Utility functions, future consumption targets and subsistence thresholds''
( 2008, Vol. 4 No.30 )
If the consumer's risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.
JEL: D9 - Intertemporal Choice and Growth: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Oct 04 2008 Manuscript Accepted : Nov 02 2008

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