Recursive preferences and balanced growth

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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...

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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 ...

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ژورنال

عنوان ژورنال: Journal of Economic Theory

سال: 2005

ISSN: 0022-0531

DOI: 10.1016/j.jet.2004.08.002