Convex dynamic programming with (bounded) recursive utility

A-Tier
Journal: Journal of Economic Theory
Year: 2018
Volume: 173
Issue: C
Pages: 118-141

Authors (2)

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 consider convex dynamic programs with general (bounded) recursive utilities. The Contraction Mapping Theorem fails when the utility aggregator does not obey any discounting property. This failure occurs even with traditional aggregators and certainty equivalent specifications. However, the Bellman operator admits a unique fixed point when an interior policy is feasible. This happens because utility values are unique at interior consumption plans and, when an interior perturbation is feasible, drops in utility values can be avoided.

Technical Details

RePEc Handle
repec:eee:jetheo:v:173:y:2018:i:c:p:118-141
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24