... theory of the firm. The point of view, therefore, is essentially pre- scriptive, placing the study in the domain of normative decision theor) In this chapter, the various components of the economic ... to be linear and in- creasing in wealth and in the present value of the non-capital income stream. In three of the four models studied, the optimal consump-, tion strategies satisfy the properties ... Irving Fisher's model of the individual, as given in The Theory of Interest, under risk. At the same time, it represents a generalization of 1 Phelps' model of personal saving. The...