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1. Two Essays on Relative Consumption
Sammanfattning : First paper: Consumption Theory with Reference Dependent Utility: Its Impact on Marginal Propensity to Consume This paper presents a closed form consumption function for an individual when he derives utility from his own previous and current consumption and from the previous consumption of his relevant others. I show that the individual's marginal propensity to consume (MPC) is smaller than the MPC under the permanent income hypothesis. LÄS MER
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