Abstract
A variant of recursive utility theory is considered to describe consumption expenditures and savings of households with unstable income. The proposed theory explains the phenomenon of growth of savings under practically stable incomes actually observed in Russia. The results were used with success in modeling the economy of a Russian region in 1996-1998. Some empirical results are also presented.
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© 2002 Springer-Verlag Berlin Heidelberg
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Pospelov, I.G. (2002). Experience in Using Recursive Utility Theory. In: Tangian, A.S., Gruber, J. (eds) Constructing and Applying Objective Functions. Lecture Notes in Economics and Mathematical Systems, vol 510. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-56038-5_14
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DOI: https://doi.org/10.1007/978-3-642-56038-5_14
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-42669-1
Online ISBN: 978-3-642-56038-5
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