Internal Habit Formation and Optimality (2019)
Working Paper
Bambi, M., & Gozzi, F. (2019). Internal Habit Formation and Optimality

Carroll et al. [7] establish that in a model with internal habits, an increase in economic growth may cause a positive change in savings. The optimality of this result has been recently questioned by several contributions in the literature which have... Read More about Internal Habit Formation and Optimality.

Exchange rates, sunspots and cycles (2018)
Working Paper
Bambi, M., & Eugeni, S. (2018). Exchange rates, sunspots and cycles

The empirical evidence on nominal exchange rate dynamics shows a long-run relationship of this variable with the fundamentals of the economy, although such relationship disappears at shorter horizons (“exchange rate disconnect” puzzle). This apparent... Read More about Exchange rates, sunspots and cycles.

Success, survive or escape? aspirations and poverty traps (2017)
Working Paper
Chivers, D. (2017). Success, survive or escape? aspirations and poverty traps

I present a model of occupational choice where an agent decides whether to invest in a project that yields risky returns or a project that yields safe returns. An agent’s utility is a¤ected by the presence of an aspiration level which will only be sa... Read More about Success, survive or escape? aspirations and poverty traps.