Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43777
Authors: 
Riedel, Frank
Year of Publication: 
2007
Series/Report no.: 
Working papers // Institute of Mathematical Economics 394
Abstract: 
Duesenberry introduced the notion of a ratchet investor who does not tolerate any decline in her consumption rate. We connect the demand behavior of such an agent to the behavior of standard time-additive agents. A ratchet investor demands the running maximum of the optimal plan a conventional time-additive investor with lower initial wealth would choose.
Subjects: 
Intertemporal consumption choice
Habit formation
Non-time separable utility
JEL: 
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
257.39 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.