Alexis Akira Toda

Alexis Akira Toda

Mathematical economist

Paper accepted

less than 1 minute read

Published:

My paper “Asymptotic Linearity of Consumption Functions and Computational Efficiency” with Qingyin Ma has been accepted for publication in Journal of Mathematical Economics. The main result is that when the marginal utility function is regularly varying (behaves like a power function), the consumption function in the optimal savings problem becomes asymptotically linear, and we characterize the asymptotic slopes. Initially, this paper was part of a larger project with Ma & Toda (2021), but we split it into two to keep them focused and at manageable lengths. The JET paper treats only the case with CRRA (constant relative risk aversion) utility, but it has an economic application. The JME paper assumes regular variation, along with some technical conditions, and discusses computational efficiency.

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