Consumption satisfaction stock
= Consumption satisfaction stock
{title2=$d\xi=(c-\lambda\xi)\,dt$}
= Consumption satisfaction
{synonym}
A <consumption satisfaction stock> smooths past <consumption> by $\xi_t=e^{-\lambda t}\xi_0+\int_0^t e^{-\lambda(t-s)}c_sds$. Unlike <multiplicative habit utility>, the running <utility function> may depend on this stock alone. A unit of present <consumption> raises future <consumption satisfaction> while costing one unit of financial <portfolio wealth>.