> ABSTRACT:
> This paper solves numerically the intertemporal consumption and
> portfolio choice problem of an infinitely-lived investor who
> faces a time-varying equity premium. The solutions we obtain are
> very similar to the approximate analytical solutions of Campbell
> and Viceira (1999), except at the upper extreme of the state
> space where both the numerical consumption and portfolio
> rules
> flatten out.
They really believe this shit, don't they? Christ, what a nasty case of Physics Envy they have.
This stuff really makes the notion of 'political' economy sound quaint, doesn't it? I mean, we're just counting beans, nothing political about that, is there?
Fuck all, I'll take Adam Smith over this crap any day, if that's the choice.
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Joseph Noonan Houston, TX jfn1 at msc.com