Optimal Portfolio Rules with Habit Formation and Preference for Wealth

This paper describes a model in which a representative investor's preference depends on both the consumption history consumption and his wealth. Thus, the investor accumulates wealth not only for the sake of consumption history but also for wealth. We examine the implication for consumption, portfolio choice. We solve the consumption portfolio choice problem and provide the optimal policy. The optimal solution to the problem shows that the preference for wealth and consumption formation will affect the investor's optimal portfolio policy. For the purpose of further research, we also calculate the steady-state distribution of habit-consumption ratio.

The Influence of Economic Policy Uncertainty and Habit Formation on Rural Residents’ Consumption

Based on the household survey data of rural residents in 30 provinces(cities,districts)of China from 1995 to 2019,this paper constructs an econometric model of farmers’consumption behavior with habit formation and economic policy uncertainty,and makes an empirical analysis of farmers’consumption behavior by using sys-gmm estimation method.The results show that:since the reform and opening up,the changes of Chinese farmers’consumption behavior not only show excessive sensitivity to income changes on the whole,but also show a significant habit forming effect,and the existence of habit effect will reduce the impact of economic policy uncertainty on consumption;there is a large gap between regions,and the consumption in the western region is affected by the uncertainty of economic policy,the impact is greater.Therefore,the government should pay attention to the impact of economic shock on consumption,maintain the systematicness and stability of the policy,enhance the stability,continuity and accuracy of the policy,drive the development of the western region,build a long-term policy mechanism to promote the sustained and rapid increase of farmers’income,and further change farmers’consumption concept.

Rethinking Habit and HabitCultivation

Habit is on the wane in the discourse of education theory, although it stillmaintains great vitality in everyday discourse. It is fair to say that habitas a concept has been distorted by behaviorism. To remove the impactof behaviorism, we need to review and reconstruct the concept of habit.Habits shape “self” and also nourish virtue. Habits concern mind andbody, which means they feature “corporeal nature” and “mental nature”.When in action, habits seem to exhibit a double law, but in effect follow asingle law. Education plays an important role in habit formation. Educationis the environmental factor of habit formation and it cultivates habitsthrough earnest practice and careful deliberation. In addition, education isalso an important approach to habit change.

Assistive technologies and habit development:a Semiotic Model of Technological Mediation

In the field of philosophy of technology,the concept of mediation is central to understanding how technology shapes human experience and behavior.Our aim in this paper is to contribute to the understanding of technological mediation,in particular how and why it is possible.Technological mediation occurs within a mediation space between the technological realm and the user realm.In the technological realm,technology regularizes events and actions,while in the user realm,the user interprets the significative potential of the technology.This interpretation process is identical with use and involves the formation of user habits,which are constrained by technological,cognitive,and sociocultural factors.To provide a theoretical framework for our analysis,we propose the Semiotic Model of Technological Mediation(SMTM),which draws on Charles Peirceʼs semiotics.To illustrate our argument,we focus on assistive technology and provide a recurring example of the Medimi®Smart,a digital,comprehensive system for medication handling.

Welfare Rigidity, the Composition of Public Expenditure and the Welfare Trap

Welfare expenditure is characterized by rigidity,i.e.,it goes up easily but is very hard to get down.We introduced welfare rigidity into an endogenous growth model that includes government expenditure to analyze the impact of welfare rigidity and the composition of public expenditure on economic growth and family utility.Our findings show that welfare spending and economic growth have a non-monotonic relationship that is negative or inverted U-shaped depending on cross-country differences.Higher welfare rigidity reduces long-term economic growth and household utility.According to the estimated optimal size of welfare expenditure,China,as a developing country with a large population,has to do all it can to improve people’s livelihood but must at the same time weigh its limited resources so that its welfare expenditure does not fall into a“welfare trap.”