We study the optimal consumption, investment, and life insurance decision of an investor with power utility and an uncertain lifetime. To separate risk aversion from elasticity of inter-temporal substitution, we
Intertemporal elasticity of substitution Euler equation Consumer Expectations Survey 1. Introduction The elasticity of intertemporal substitution (EIS) measures how consumers adjust their expected consumption growth in response to anticipated changes in the real interest rate. It determines the extent of shift...
Elastic demand equates to flexibility in purchasing decisions — whether in quantities purchased, the chosen brand or product substitution. Inelastic demand is unwavering, up to a point. For this reason, reducing elasticity is often considered to be a marketer’s primary goal: to position a produc...
(inequality, inter-temporal substitution, substitution between goods, and risk aversion) in which the agent is making decisions. That is, aversion to differences in consumption is the same regardless of whether it occurs between individuals today, across time or across risky scenarios. Using revealed...
Direct substitution of Eq. (10) into Eqs. (3, 4) reveals that the equations of motion are invariant under parity if and only if C21 and C12 are zero. Hence, we say that C21 and C12 are micropolar moduli. It is useful to parameterize the C(ω) as $$\left[\begin{array}{cc}{C}...
The cross-price elasticity coefficients were positive with respect to juice and tea implying substitution of ASBs with these products while it was negative with respect to milk implying a complementarity. Separate rural-urban regressions show the own-price elasticity coefficient was marginally bigger in...
For example, in many common CGE frameworks, this demand function arises from a constant elasticity of substitution (CES) cost or utility function in which buyers regard home and foreign varieties as imperfect substitutes. This is known as the Armington assumption (and σ is sometimes referred to ...
With the purpose to induce a net magnetic signal in BiFeO3, substitution of Bi in the A position by an alkaline earth element such as Sr has been successfully tested, and a weak ferromagnetism has been obtained. Important magnetoelectric effects, as the increase of the spontaneous polarization ...
In the present work, the use of gradient elasticity theory in the determination of the ratio K, is presented, in order to overcome the difficulties in the interpretation of geostatic stresses variation. Triantafyllidis and Aifantis (1986) revisited the theory of non-linear elasticity by allowing...
The property whereby a solid material changes its shape and size under action of opposing forces, but recovers its original configuration when the forces are removed. The existence of forces which tend to restore to its original position any part of a medium (solid or fluid) which has been di...