On the stability of the constant relative risk aversion (CRRA) utility under high degrees of uncertainty

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 115
Issue: 2
Pages: 244-248

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

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

Abstract

Growth models under uncertainty and constant relative risk aversion (CRRA) utility are fragile in explaining consumers’ choice, as equilibrium consumption is dependent on distributional assumptions. We show that, under semi-nonparametric distributions, general equilibrium models are stable, as the existence of expected utility is guaranteed.

Technical Details

RePEc Handle
repec:eee:ecolet:v:115:y:2012:i:2:p:244-248
Journal Field
General
Author Count
4
Added to Database
2026-01-28