Optimal consumption for recursive preferences with local substitution — the case of certainty

B-Tier
Journal: Journal of Mathematical Economics
Year: 2024
Volume: 110
Issue: C

Authors (3)

Li, Hanwu (not in RePEc) Riedel, Frank (Universität Bielefeld) Yang, Shuzhen (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We characterize optimal consumption policies in a recursive intertemporal utility framework with local substitution. We establish existence, uniqueness, and a version of the Kuhn–Tucker theorem. The structure of optimal consumption plans is described explicitly for a large class of aggregators. For Epstein-Zin preferences, the solution coincides with the solution of the corresponding time-additive preferences.

Technical Details

RePEc Handle
repec:eee:mateco:v:110:y:2024:i:c:s0304406823001258
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29