The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors
A type of complete financial market with finite and countable heterogeneous investors, that is, investors equipped with heterogeneous elasticities of intertemporal substitution, heterogeneous time discount rates, and also heterogeneous beliefs, is constructed and two main results are established. Fi...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2014/482314 |
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| author | Darong Dai |
| author_facet | Darong Dai |
| author_sort | Darong Dai |
| collection | DOAJ |
| description | A type of complete financial market with finite and countable heterogeneous investors, that is, investors equipped with heterogeneous elasticities of intertemporal substitution, heterogeneous time discount rates, and also heterogeneous beliefs, is constructed and two main results are established. First, long-run behaviors, specifically golden rules or modified golden rules, about consumption path and wealth accumulation are investigated under uncertainty and in the sense of uniform topology. Second, inefficacy of temporary taxation policies, which are chosen to be consumption tax and wealth tax, is confirmed in the current financial market. |
| format | Article |
| id | doaj-art-d4d6d589398c44a697ffd164d295cfbe |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-d4d6d589398c44a697ffd164d295cfbe2025-02-03T05:43:51ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/482314482314The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous InvestorsDarong Dai0Department of Economics, Texas A&M University, College Station, TX 77843, USAA type of complete financial market with finite and countable heterogeneous investors, that is, investors equipped with heterogeneous elasticities of intertemporal substitution, heterogeneous time discount rates, and also heterogeneous beliefs, is constructed and two main results are established. First, long-run behaviors, specifically golden rules or modified golden rules, about consumption path and wealth accumulation are investigated under uncertainty and in the sense of uniform topology. Second, inefficacy of temporary taxation policies, which are chosen to be consumption tax and wealth tax, is confirmed in the current financial market.http://dx.doi.org/10.1155/2014/482314 |
| spellingShingle | Darong Dai The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors Journal of Applied Mathematics |
| title | The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors |
| title_full | The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors |
| title_fullStr | The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors |
| title_full_unstemmed | The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors |
| title_short | The Long-Run Behavior of Consumption and Wealth Dynamics in Complete Financial Market with Heterogeneous Investors |
| title_sort | long run behavior of consumption and wealth dynamics in complete financial market with heterogeneous investors |
| url | http://dx.doi.org/10.1155/2014/482314 |
| work_keys_str_mv | AT darongdai thelongrunbehaviorofconsumptionandwealthdynamicsincompletefinancialmarketwithheterogeneousinvestors AT darongdai longrunbehaviorofconsumptionandwealthdynamicsincompletefinancialmarketwithheterogeneousinvestors |