Dynamic Preference for Flexibility Unobservable Persistent Taste Shocks
نویسندگان
چکیده
In this supplement to Krishna and Sadowski [2013], we construct a recursive representation of choice over infinite horizon consumption problems where the decision maker’s utilities follow a subjective Markov process. The parameters of the representations, which are the (evolution of) beliefs over consumption utilities, and the discount factor, are uniquely identified from behavior.
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