• Journal of the Chungcheong Mathematical Society
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• v.27 no.2
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• pp.219-225
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• 2014

I use the dynamic programming approach to study the optimal consumption and investment problem with regime-switching and constant labor income. I derive the optimal solutions in closed-form with constant absolute risk aversion (CARA) utility and constant disutility.

• KDI Journal of Economic Policy
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• v.43 no.2
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• pp.1-22
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• 2021

The effects of social distancing measures on income distributions and aggregate variables are examined with an off-the-shelf heterogeneous-agent incomplete-market model. The model shows that social distancing measures, which limit households' labor supply, can decrease the labor supply of low-income households who hold insufficient assets and need income the most given their borrowing constraints. Social distancing measures can therefore exacerbate income inequality by lowering the incomes of the poor. An equilibrium interest rate can fall when the social distancing shock is expected to be persistent because households save more to prepare for rising consumption volatility given the possibility of binding to the labor supply constraint over time. When the shock is expected to be transitory, in contrast, the interest rate can rise upon the arrival of the shock because constrained households choose to borrow more to smooth consumption given the expectation that the shock will fade away. The model also shows that social distancing shocks, which diminish households' consumption demand, can decrease households' incomes evenly for every income quantile, having a limited impact on income inequality.

• Korean Management Science Review
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• v.33 no.1
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• pp.77-87
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• 2016

I study optimal consumption and investment choices of an infinitely-lived economic agent with a general time-separable von Neumann-Morgenstern utility under general borrowing constraints against future labor income. An explicit solution is provided by the dynamic programming method. It is shown that the optimal consumption and risky investment decrease as the borrowing constraints become stronger.

• Journal of the Chungcheong Mathematical Society
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• v.33 no.1
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• pp.103-112
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• 2020

This paper investigates the portfolio selection problem with flexible labor choice and stochastic income flow where the unit wage flow is governed by a stochastic process. The agent optimally chooses consumption, investment, and labor supply. We derive the closed-form solution by applying a martingale method even with the stochastic income flow.

• Journal of Labour Economics
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• v.36 no.1
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• pp.93-129
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• 2013

Analyzing the change in consumption pattern depending on the employment of married women, the spendings in transportation, education, and dining out are increased. The change in consumption patterns depending on the increase of dual-income family can be seen as the increased demand of market service that replaces the household production service. Especially when the employment of married woman from high income class(highly educated, middle-class, upper-class) is increased, they tend to get employed in more professional and highly skilled industries, which leads to higher effect on employment induction, and consequently increasing the labor demand for low-skilled service industry.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.18 no.4
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• pp.283-294
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• 2014

In this paper we study consumption-labor supply decision of an agent who prepares for retirement at a known time in the future. The agent is assumed to have a preference which is represented by the von Neumann-Morgenstern utility function in which the felicity function has constant relative risk aversion over the composite of consumption and leisure. The composite is obtained by the Cobb-Douglas function. A general problem has been studied by Bodie et al. (2004). We contribute to the literature by deriving the Slutsky equations and conducting comparative statics. In particular, we show that wealth effect can exhibit an interesting property depending upon the time until retirement, as the interest rate increases.

• Journal of the Chungcheong Mathematical Society
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• v.31 no.1
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• pp.65-73
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• 2018

We investigate the optimal consumption and investment problem of working agent who faces tax system on consumption, labor income, savings and investment. By applying martingale method, we obtain the closed-form solutions so it is possible to verify the effect of tax system analytically.

• Journal of Families and Better Life
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• v.26 no.2
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• pp.83-101
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• 2008

This research performs a multi comparison between the age of old households and the economic structure according to accommodation type as well as analyzing the economical structural difference of each type based on the features of aged households. The paper classified aged households into 3 groups according to age distribution. The economic structure analysis according to the age of old households and accommodation type was shown as follow: First, the economical structural analysis based on the age of old households showed a statistical difference in the total, labor, business, property and transfer income variables according to the age of each sample group. However, the non-business income and liabilities did not show a significant difference. Second, in the analysis of different economic earnings and initial expenses of middle-aged households according to the age distribution group showed a disparity in the total, labor, business, property, and transfer income variables according to the age of each sample group. However, aged households showed a statistical difference in total, labor, business and transfer income variables. Third, in the analysis of difference in the expense provision and size of consumption, there was a statistical difference in the expense variables of total consumption, food, dining out, electricity, water, furniture, kitchen supplies, clothing, shoe, education, culture, entertainment, transportation, and communication. Fourth, in the analysis of difference in the size of consumption expense, the initial and middle-aged households showed a statistical difference in the total consumption, food, dining out, electricity, water, furniture, kitchen supplies, clothing, shoe, education, culture, entertainment, transportation, communication, and consumption expense variables. However, the analysis of aged households has shown a statistical difference in the total consumption, food, dining out, electricity, water, furniture, kitchen supplies, clothing, shoe, education, culture, entertainment, transportation, and communication expense variables. The study found a statistical difference in the expense for hygienics that did not appear in the initial and middle-aged households.

• The Journal of Industrial Distribution & Business
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• v.13 no.7
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• pp.37-45
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• 2022

Purpose: Leisure time is an intrinsic part of the work-life balance that enables people to rejuvenate their energy and provides a platform to maintain their health while sustaining their productivity levels. The purpose of this study is to investigate the effects of changes in leisure consumption culture on the modern economy through various research materials. Research design, data and methodology: To have completeness in published systematic reviews and meta-analyses, the use of the standard Preferred Reporting Items for Systematic Reviews and Meta-Analyses checklist is essential and the present research selected this research design. Results: This research figured out that individuals who spend most of their leisure time watching TV have been shown to experience lesser satisfaction in their job designation and less happiness overall and also found that Leukocyte Telomere Length is influenced by the type of leisure an individual engages in. Conclusions: Overall, this research points out that the income effect may provide an inverse relationship between work time and labor in that high income from labor makes an individual less inclined to work to make the same money they made before the increased benefits. It is a narrative that may need further research in finding the principles that govern leisure in the labor force.

• Journal of the Korean Regional Science Association
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• v.11 no.1
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• pp.79-91
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• 1995

As an exit to solve the economic depression of the development countries in the early twentieth century, the 'old international division of labor' developed. The economic crisis(i.e., under-consumption crisis) was due to the absence of the mode of regulation compatible with the extensive regime of accumulation(i.e., "Fordist" regime). The crisis was solved by the state intervention through the creation on institutions in order to increase the level of consumption. Until the late 1960s when "high Fordism" reached(i.e., a harmonious relation between the monopoly mode of regulation and the intensive accumulation of capital), the developed core countries enjoyed a remarkable economic growth. The external market was not a necessity for the economic growth because there were increases in labor productivity and proportional increases in real wages and thus increases in consumption level. In the 1970s, however, the core faced with economic crisis again. Due to the breakdown of the postwar "Fordist" regime of capital accumulation and the post 1973 world depression, the core needed the Third World as a solution for their internal and international economic crisis. Thus the 'new international division of labor'(NIDL) arose. The "Fordist" method of production(i.e., the divisions of production process) led to the territorial division of labor and to the detailed division of labor. The aim of the NIDL is to exploit reserve armies of labor on a world scale and thus to reduce production costs. According to the NIDL model, the Third World countries have been developing by the core countries' investment on mainly labor-intensive industries and thus have been playing an important role in the global economy. And the NIDL theorists argue that multinational corporations have increasingly invested in the Third World nations and contributed to the economic growth in those regions. Tables presented in the paper show that the global trend since the 1970s does not follow the argument exactly as the NIDL theorists predicted. On the contrary, the core countries focus on developing technology, adopting the automation of production process, and trading within the core countries rather than on investing in the periopheral countries. The continuing investment of multinational corporations into the periphery is not because of cheap labor force but because of the market potentials in the regions. Majority of corporations of the core tries to reduce production costs by investing in technological development more intensively and also by changing regional strategies (i.E., investment from metropolitan areas to medium - or small - size cities, focusing on agglomeration economy, boosting regional diversification, etc.) within their own countries. The main purpose of the paper is to review and to criticize the NIDL theory based on some empirical data.IDL theory based on some empirical data.