Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18392| Title: | The Store-of-Value-Function of Money as a Component of Household Risk Management |
| Keywords: | E41 E21 D11 ddc:330 Money demand consumption CRRA CARA exponential utility households risk risk management Geldnachfrage Geldwert Zeitpräferenz Risikomanagement Konsumtheorie Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Deutsches Institut für Wirtschaftsforschung (DIW) Berlin |
| Description: | We analyse how money as a store of value affects the decisions of a representative household under diversifiable and non-diversifiable risks given that the central bank successfully stabilizes the rate of inflation at a low level. Assuming exponential utility allows us to derive an explicit relationship between optimal money holdings, the household?s desire to tilt, smooth and stabilize consumption as well as minimize portfolio risk. In this context we also show how the correlation between stochastic labour income and stock returns impact the store-of-value function of money. Finally we prove that the store-of-value benefits of money holdings continue to hold even if we take riskless alternatives into account. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18392 |
| Other Identifiers: | http://hdl.handle.net/10419/18392 ppn:523979347 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.