Parameter interchangeability under recursive utility with housing
Sign Up to like & getrecommendations! Published in 2018 at "Journal of Economics and Finance"
DOI: 10.1007/s12197-018-9433-2
Abstract: We investigate the interchangeability of two central elements of most macroeconomic models, the parameter of intertemporal substitution and time discount rate. We use a recursive utility model during retirement with housing, uncertain life time and… read more here.
Keywords: utility; interchangeability; housing; recursive utility ... See more keywords
Envelope theorem in dynamic economic models with recursive utility
Sign Up to like & getrecommendations! Published in 2018 at "Economics Letters"
DOI: 10.1016/j.econlet.2017.11.018
Abstract: This paper investigates the first-order differentiability properties of the value function in dynamic economic models with recursive preferences where the optimal policy may lie at the boundary of the feasible set under several regular assumptions… read more here.
Keywords: models recursive; economic models; envelope theorem; theorem dynamic ... See more keywords