Exotic Preferences for Macroeconomists

Exotic Preferences for Macroeconomists
Author: David Backus
Publisher:
Total Pages: 63
Release: 2004
Genre: Economics
ISBN:

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We provide a user's guide to exotic' preferences: nonlinear time aggregators, departures from expected utility, preferences over time with known and unknown probabilities, risk-sensitive and robust control, hyperbolic' discounting, and preferences over sets ( temptations'). We apply each to a number of classic problems in macroeconomics and finance, including consumption and saving, portfolio choice, asset pricing, and Pareto optimal allocations.