Koopmans recursive preferences and income convergence

Koopmans recursive preferences and income convergence

Stiglitz (Econometrica 37 (1969) 382) shows income convergence in a many-agent Solow growth model with integrated capital markets (ICM). The many-agent Ramsey model (MARM) without ICM also gives income convergence. With a MARM, equal discount rates, and ICM, convergence of incomes (as opposed to product per capita) cannot occur. These results depend upon fixed saving propensities (Stiglitz) or ...

Income Convergence In Iranian Regions

Recursive preferences and balanced growth

We study a class of utility functions that are defined recursively by an aggregator W (x, y) where ut =W ( ct , ut+1 ) . In single-agent economies it is known that a sufficient condition for the existence of a balanced growth path is that utility should be homogenous of degree . In the context of a multiagent economy we show that this restriction implies that either a balanced growth equilibriu...

Recursive Preferences and Balanced Growth1

We study a class of utility functions that are defined recursively by an aggregator W (x, y) where ut =W (ct, ut+1). In single-agent economies it is known that a sufficient condition for the existence of a balanced growth path is that utility should be homogenous of degree γ. In the context of a multi-agent economy we show that this restriction implies that either a balanced growth equilibrium ...

Recursive smooth ambiguity preferences

Introduction Propose and provide foundations for a preference model set in an explicitly dynamic framework with uncertainty where: DM is sensitive to ambiguity ambiguity attitude is separated from ambiguity ‡exibility in ambiguity attitude and in scope of ambiguity preferences are dynamically consistent discounted expected utility is a special case beliefs are updated over time