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Survival and Long-Run Dynamics with Heterogeneous Beliefs under Recursive Preferences

Dados Bibliográficos

ID10174286
AutoresJaroslav Borovička (0000-0003-0183-0041, National Bureau of Economic Research, autor correspondente)
Ano2019
Volume128
Fascículo1
Páginas206-251
Data de publicação2019-04-18
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoJournal of Political Economy (JOURNAL)
Identificadores do periódicoISSN: 0022-3808 • E-ISSN: 1537-534X
EditoraUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/704072
OpenAlexW3121593559
IdiomaEN
Citações recebidas1
Referências citadas73

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

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Obras citantes distintas1
Citações por ano0,25
Intervalo de citações2022 - 2022 (1)
Velocidade de citaçãohistorical
Altamente citadoNão
Tipos de citaçãoNeutras: 1
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