The money-age distribution: Empirical facts and the limits of three monetary models

The money-age distribution is hump-shaped for the US post-war economy. There is no clear-cut relation between the variation of money holdings within generations and age. Furthermore, money is found to be only weakly correlated with both income and wealth. We analyze three motives for money demand in an overlapping generations setup in order to explain these observations: (1) money-in-the-utility, (2) an economy with costly credit service, and (3) limited-participation. All three models are consistent with the hump-shaped relation between average money holdings and age, yet they predict a much closer association between money holdings, income, wealth, and age than we find in the data. Only the limited-participation model partly replicates the low bivariate correlation between money and income as well as between money and interest-bearing assets. None of the three models satisfactorily explains these stylized facts.     

The provision of public goods in a growing urban economy

The growth path of a mixed open urban economy is considered. In the private sector profit maximizing firms produce an all-purpose output with labor, capital and public infrastructure. Workers move between the urban area and the rest of the nation so as to increase their real income which is the sum of wages and income derived from the use of the urban infrastructure. The public sector determines infrastructure investments so as to maximize the current value of future per capita felicity. Infrastructure has public good characteristics and is used jointly by firms and workers. The urban growth path is derived and public sector policies are analyzed.     

Do consumers care about food miles? An empirical analysis in France

We conducted two qualitative surveys to identify whether food miles, defined as the distance that foodstuff travels between the production location and the consumption marketplace, matter for French consumers. First, two focus groups with ‘conventional’ consumers show that distance is a multidimensional concept, both positively and negatively perceived, and that most consumers are not concerned by food miles and their subsequent environmental impact. Second, 10 face‐to‐face interviews with consumers of locally grown organic food demonstrate that these consumers purchase local food for other reasons than reducing ‘food miles’ and buy imported organic food in spite of increased food miles. We shed light on this situation using theoretical concepts from economics and psychology. Some implications for policymakers and marketers are stressed.     

Dynamics of land-use for a closed city

This paper analyses land-use patterns in a closed only when experiences a discontinuous population change that is anticipated by developers. At each location, developers choose among five development strategies: constructing a building at time zero which is left standing forever, constructing a building at time zero and replacing it at the date τ of the population change, farming the land until τ, with residential development thereafter, and vice-versa, farming the land continuously. By deriving admissable spatial patterns for these five strategies, the analysis is able to characterize the spatial and temporal pattern of land-use in a closed city.