Hunting For Snipe

Over at Worthwhile Canadian Initiative, Nick Rowe continues to wage his crusade. (See also here, here, here, here, here, here, here, here, here, here).

Continue reading “Hunting For Snipe”

Advertisements
Hunting For Snipe

Arbitrage and Non-Arbitrage

There is  a lively discussion over at Warren Mosler’s modestly named blog  Center Of the Universe, revolving around Mosler’s plan for Greece. We’ve heard this story before, but this particular plan is a bit more tricky to dissect, so let’s get some background information on arbitrage first.

Continue reading “Arbitrage and Non-Arbitrage”

Arbitrage and Non-Arbitrage

Consumption, Part 2: Concavity

These are some notes on two papers of Christopher Carroll and Miles Kimball: “Liquidity Constraints and Precautionary Savings” (2001) and “On the Concavity of the Consumption Function” (1996).  My only original contribution is to point out that you can extend the (1996) results to any utility function which has the property that the ratio of prudence to risk aversion is a convex decreasing function.

Continue reading “Consumption, Part 2: Concavity”

Consumption, Part 2: Concavity