Survival and Long-Run Dynamics with Heterogeneous Beliefs under Recursive Preferences
Bibliographic Data
| ID | 10174286 |
|---|---|
| Authors | Jaroslav Borovička (0000-0003-0183-0041, National Bureau of Economic Research, corresponding author) |
| Year | 2019 |
| Volume | 128 |
| Issue | 1 |
| Pages | 206-251 |
| Publication date | 2019-04-18 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/704072 |
| OpenAlex | W3121593559 |
| Language | EN |
| Citations received | 1 |
| References cited | 73 |
I analytically characterize the long-run behavior of an economy with two types of agents who differ in their beliefs and are endowed with homothetic recursive preferences. Agents with more incorrect beliefs dominate, or agents with different accuracy of their beliefs coexist in the long run, for broad ranges of plausible parameterizations when risk aversion is greater than the inverse of the intertemporal elasticity of substitution. The results highlight a crucial interaction between risk sharing, speculative behavior and consumption-saving choice of agents with heterogeneous beliefs, and the role of equilibrium prices in shaping long-run outcomes
Consumption (sociology · Econometrics · Economics · Elasticity (physics · Elasticity of substitution · Expected utility hypothesis · Homothetic transformation · Mathematical economics · Microeconomics · Production (economics · Risk aversion (psychology · Substitution (logic · Utility maximization · Computer Science · Economic theories and models · Financial Literacy, Pension, Retirement Analysis · Mathematics · Monetary Policy and Economic Impact
Essays in positive economics
Stationary Ordinal Utility and Impatience
Temporal Resolution of Uncertainty and Dynamic Choice Theory
Uncertainty and Economic Activity
Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns
Optimum consumption and portfolio rules in a continuous-time model
Wealth Inequality in the United States since 1913
Learning from Inflation Experiences
Smooth Ambiguity Aversion toward Small Risks and Continuous-Time Recursive Utility
Optimal Financial Knowledge and Wealth Inequality
Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns
Overconfidence and Speculative Bubbles
Young, Old, Conservative, and Bold
Uncertainty, Evolution, and Economic Theory
Wealth Dynamics in a Bond Economy with Heterogeneous Beliefs
Speculation and Financial Wealth Distribution Under Belief Heterogeneity
What Do We Know about the Evolution of Top Wealth Shares in the United States
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,25 |
| Citation span | 2022 - 2022 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |