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dc.contributor.authorGareth Thomas, David
dc.contributor.authorBywaters, David
dc.identifier.citationGareth Thomas , D & Bywaters , D 2006 , ' Consumption, Wealth, and Indebtedness in the Context of Uncertainty : The Consumption Function Meets Portfolio Theory ' , International Advances in Economic Research , vol. 12 , no. 3 , pp. 298-307 .
dc.identifier.otherPURE: 949175
dc.identifier.otherPURE UUID: 8e85e81b-8eaf-46be-9f7a-8ae1bbe07a2b
dc.identifier.otherScopus: 33747868705
dc.description.abstractThe ojective of this paper is to provide a sound theoretical framework for the empirical analysis of consumer indetedness, by integrating Portfolio theory with the Life-Cycle Hypothesis (LCH) model of consumption. Modern versions of this LCH theory almost always assume that utility is additive over time, but this study, the multiplicative Cobb-Douglas function is used. The new sythesis also explains the stochastic properities of consumption more fully and clearly than previous studies, in particular the uncerttainty arising from the rates of return on risky assets. The new theory will also help to improve the explanation of the surprise changes in consumption because these sources of risk are incorporated explicitly into the analysis.en
dc.relation.ispartofInternational Advances in Economic Research
dc.titleConsumption, Wealth, and Indebtedness in the Context of Uncertainty : The Consumption Function Meets Portfolio Theoryen
dc.contributor.institutionHertfordshire Business School
dc.contributor.institutionSocial Sciences, Arts & Humanities Research Institute
dc.contributor.institutionCentre for Research on Management, Economy and Society
dc.contributor.institutionDepartment of Accounting, Finance and Economics
dc.description.statusPeer reviewed
rioxxterms.typeJournal Article/Review

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