What model features and calibration strategies yield a large average marginal propensity to
consume (MPC) in heterogeneous agent models? Through a systematic investigation of …

I construct an economy with heterogeneous agents that mimics the time‐series behavior of
the earnings distribution in the United States from 1963 to 2003. Agents face aggregate and …

We provide a user's guide to exotic preferences: nonlinear time aggregators, departures
from expected utility, preferences over time with known and unknown probabilities, risk …

The paper first reviews some of the main challenges posed to our received economic
paradigm by a variety of behaviors documented by psychologists and discusses possible …

We study optimal taxation when consumers have temptation and self‐control problems.
Embedding the class of preferences developed by Gul and Pesendorfer into a standard …

Springer Finance is a programme of books addressing students, academics and
practitioners working on increasingly technical approaches to the analysis of financial …

It is widely understood that business-owning families pursue socioemotional wealth (SEW)
primarily to satisfy their desire for control over the firm. Unfortunately, due to the private …

The economic models that prescribe Pigovian taxation as the first-best means of reducing
energy-related externalities are typically based on the neoclassical model of rational …

A basic assumption of economics is that consumers choose what they want. However, many
consumers find it difficult to stop overeating, overspending, smoking, procrastinating, etc …

The literature on self-control problems has typically concentrated on immediate temptations.
This paper studies a Gul and Pesendorfer [Temptation and self-control, Econometrica 69 …