Utility functions, future consumption targets and subsistence thresholds

Author: 
Ashok Guha
Brishti Guha
Description: 
Paper No. 13-2008
JEL codes: 
Organisation: 
Abstract: 
If the consumers 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.
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