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ASSET MANAGEMENT, ALLOCATION OF TIME, AND RETURNS TO SAVING *
Author(s) -
EHRLICH ISAAC,
BENZION URI
Publication year - 1976
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1976.tb00442.x
Subject(s) - economics , consumption (sociology) , asset allocation , asset (computer security) , production (economics) , microeconomics , asset management , point (geometry) , capital (architecture) , finance , computer science , portfolio , social science , geometry , computer security , mathematics , archaeology , sociology , history
The paper entertains the proposition that individuals' time performs a productive role in generating nonwage income through the management of nonhuman capital assets. The asset management hypothesis is used to develop a life cycle model of consumptive and productive decisions. The model allows for variations in gross rates of return both across persons at a point in time and for any one person over his life cycle. The behavioral implications developed show that differences across consumption units in their time allocations and in their borrowing, saving, and asset holding decisions may be the result of differences in opportunities rather than “tastes.”