{"id":236,"date":"2007-05-07T21:55:18","date_gmt":"2007-05-08T05:55:18","guid":{"rendered":"http:\/\/www.ticoneva.com\/journal\/?p=236"},"modified":"2008-04-24T12:12:29","modified_gmt":"2008-04-24T20:12:29","slug":"236","status":"publish","type":"post","link":"https:\/\/www.ticoneva.com\/journal\/?p=236","title":{"rendered":""},"content":{"rendered":"<p>For those of you who know me well you understand how notoriously slow my decision making is; that&#8217;s what you get when you take economics theory literally. In any case as I ponder today I believe my decisions are correct in most cases. For one I rarely suffer from buyer&#8217;s remorse&#8211;I suppose someone who actually calculates price per ounce during the purchase of potato chips is incapable of that. At this moment I am clearly smoothing my consumption&#8211;taking a huge debt that is. Given how easy it is to sell things on Ebay and Craig&#8217;s List one could argue that borrowing, try and sell if unsatisfied is a dominate strategy. Not that this is easy to do&#8211;a lot of self control is needed for the &#8220;sell&#8221; part to work. That said, the $5000 credit card debt an average American takes on is <em>not<\/em> consumption smoothing; for them there is no foreseeable huge raise in income. I would even say the right thing for them to do should be saving. <\/p>\n<p>Consumption smoothing is not as easy as it sounds; one really have to be thinking in terms of &#8220;the very long run&#8221; for this to work. And the real difficulty lies not in <em>how much<\/em> to spend but <em>how<\/em> to spend. Last but not the least credit constraint is very, very real.<!--7ca25d9c5b44dc4cf8224cf95e08f7f1--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For those of you who know me well you understand how notoriously slow my decision making is; that&#8217;s what you get when you take economics theory literally. In any case as I ponder today I believe my decisions are correct in most cases. For one I rarely suffer from buyer&#8217;s remorse&#8211;I suppose someone who actually [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-236","post","type-post","status-publish","format-standard","hentry","category-political-economy"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=\/wp\/v2\/posts\/236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=236"}],"version-history":[{"count":0,"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=\/wp\/v2\/posts\/236\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ticoneva.com\/journal\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}