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The purpose of this paper is to derive the real implications of inflation targeting using optimizing models characterized by endogenous time preference.

To ensure consistent consumption and savings behavior, the rate of time preference is modeled as an increasing function of real wealth.

The results are not uniform and depend on the methods for modeling money in the general equilibrium framework; money in the utility function (MIU) and cash‐in‐advance constraints (CIA). With MIU, time preference wealth effects link the monetary and real sectors by endogenizing real interest rate. Monetary growth raises steady state capital and consumption by the Tobin effect. However, if money is introduced through CIA constraints, inflation policies are sensitive to the structure of the constraint itself. If the constraint applies to consumption and capital purchases, monetary growth lowers the steady state demand for both commodities and reverses the Tobin effect. If the constraint applies only to consumption goods, the same monetary policy is superneutral. This time preference specification has important advantages. It is consistent with the literature that integrates reinforcing wealth effects into aggregative models using ad‐hoc consumption or savings functions. Allowing the rate of time preference to depend positively on real wealth implies that optimizing behavior, not ad‐hoc specification yields wealth effects that endogenize the real interest rate and generate a Tobin effect. This time preference specification provides optimizing foundations for modeling savings as a decreasing function of real wealth, which is empirically verifiable and consistent with empirical predictions of consumption as an increasing function of real wealth.

This paper demonstrates the different effects that monetary policy maintains on steady state capital, consumption and real balance holdings in economies characterized by an endogenous rate of time preference.

Affordable and clean energy as well as regulation and decrease in emissions are in the heart of sustainable development goals. In order to achieve these goals, cleaner technologies together with responsible consumption and production need to be adopted. Therefore, the knowledge, skills and habits – the human capital and increased awareness of its importance, play an important role. The relationship between sustainability and human capital has been addressed only recently. There had been two streams of literature, investigating either (i) the relationship of human capital and the economic growth, or (ii) the nexus of economic growth and sustainability, without realizing the interconnectedness of these concepts. In this chapter, the authors add contribution to this scarce, yet growing body of literature by investigating the relationship between human capital (measured by Index of human capital) and two measures of sustainability: electricity use and CO₂ emissions for a panel of European Union Member States. The authors show that the increase in human capital is associated with the decrease in energy consumption and CO₂ emissions and therefore is associated with the increase in sustainability. This chapter bears important policy implications since it shows that the human capital, its stock and quality, should be included in the sustainability discussions and is important for achieving the sustainability goals.

This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption.

To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares.

The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques.

Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation.

To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

The purpose of this paper is to analyse inclusive growth that focuses on the creation of opportunities for all. Inclusive growth allows people to contribute to and benefit from economic growth, while pro-poor growth approaches focusing on welfare of the poor only to reduce inequality.

Social capital forms with the development of human capital through schooling. Educated individuals are interested in dialogue and conversation. Interaction enables people to build trust, confidence and cooperation, to commit themselves to each other (i.e. reciprocity), and thereby to knit the social fabric. This study deals with the formation of social capital through development of human capital that is created through improvement of schooling and/or social inclusion. Creation of human and social capital is the basis for inclusive growth.

Recently, economics literature incorporates social capital for explaining regional disparities. Economic development of country depends on the impact of social capital which includes social culture, norms and regulations that promote economic reforms and development activities. Social capital forms with the development of human capital through schooling.

More detail regional levels data are required for empirical findings.

This paper definitely suggests a clear policy for inclusive growth model in less developed regions/countries. Briefly and specific few policies are suggested as: first, improve productive consumption providing nutritional intake to all the excluded people of the society; second, dismal the social blocking and create the base for bridging social capital formation; third, improve school enrollment and strengthen the feeling of togetherness; fourth, design school curriculum as per need base; and fifth, develop institutions and improve capacity building.

The Government expenditure policy should be focused more on productive consumption rather than unproductive consumption. The government should concentrate on the development of education and health sectors.

The inclusive economic growth process overcomes low-level equilibrium trap. The predictions of the model are examined empirically for a cross-section of countries and have substantial support in the chosen sample data.

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms governing the formation of preferences. This may be a correct procedure as far as ordinary functional goods are concerned. Problems tend to arise with creative goods (e.g. cultural goods) whose consumption (i) requires skills acquired through education and experience and (ii) generates positive and negative feedbacks and learning-by-consuming processes. This paper presents a simple model of local learning explaining the idiosyncratic accumulation of consumption human capital. Consumption generates local feedback mechanisms whose characteristics depend on the nature of goods and on the type of agent. The model provides some insights on the microeconomics of creative consumption and on the specific role of education.

The purpose of this paper is to explore the capital-based benefits which arise when acculturating immigrants perform touristic practices, and how these shape their tourism and migration experiences.

Grounded in consumer culture theory, this paper draws on theories of capital consumption to inform a hermeneutic analysis of multi-modal depth interviews with Southeast Asian skilled migrants in New Zealand.

Domestic touristic practices offer three types of capital-based benefits, enabling consumers to index economic capital, accrue social capital and index cultural capital. Additionally, the quest for capital emphasises iconic forms of tourism and supersedes concerns about commodification.

This paper demonstrates the important role of touristic practices not only in short-term mobility, but also for long-term migrants. Further research should investigate how capital shapes the touristic practices of other types of mobile consumers.

Understanding the capital-based benefits of touristic practices in acculturation informs the design of migrant settlement policy and the managerial staging of touristic experiences.

While theorists of liquid modernity have largely treated tourism as a discrete type of mobility, this paper reframes tourism as a key acculturation practice. In contrast to dominant conceptualisations of tourism as a quest for cultural authenticity, this paper reconceptualises tourism as a quest for capital. Finally, while previous studies have focused on how capital constrains acculturation outcomes, this paper explores how a consumption practice enables the expression and accumulation of capital.

Monetary conditions necessary for equilibrium:[Keynes] “A Treatise on Money,” Vol. I, Books 3 and 4Robertson's “Banking Policy and the Price Level”Hayek's “Prices and Production”Marshall (short period of equilibrium: quasi-rent – supplementary cost, Book V, Chapters 4, 5, 9)Harrod, The Economic Journal, June 1930, “Notes on Supply”Kahn, The Economic Journal, June 1931, “Relation of Home Investment to Unemployment”