Unique solutions for stochastic recursive utilities

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 5
Pages: 1776-1804

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study unique and globally attracting solutions of a general nonlinear stochastic equation, widely used in Finance and Macroeconomics and closely related to stochastic Koopmans equations. The equation is specified by a temporal aggregator W and a certainty equivalent operator . The main contribution of the paper is the introduction of the new class of Thompson aggregators. Other contributions of the paper are: (i) a detailed analysis of quasi-arithmetic operators that generalize those of Kreps and Porteus (1978) [18]; (ii) a clarification of the nature and properties of the stochastic recursive preferences that underlie Koopmans equations.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:5:p:1776-1804
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25