Title: Risk Averse, Time Optimizing Behavior Of Households: Comparison With German Microcensus Data
Abstract: This chapter and its successor have in common the emphasis on time as a fundamental component of decisions, in this chapter those of households, and in the next those of enterprises. * In the case of microeconomics, be it of the partial-equilibrium or of the general-equilibrium sort, much of what is interesting can be said without explicit reference to time (an exception being the time path from disequilibrium back to equilibrium). But in dealing with behavior of the large aggregates, it is obvious that plans made affect the time-path of income, consumption, investment, the price-level, and the balance of payments. These in turn may confirm expectations at the base of decisions made, or they may call for revisions. But there is no agreed-on mechanism which brings the economy back to full employment, stable prices, and external balance.
Publication Year: 1991
Publication Date: 1991-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
Access and Citation
Cited By Count: 2
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