Recursive allocations and wealth distribution with multiple goods: Existence, survivorship, and dynamics

R. Colacito, M. M. Croce and Zhao Liu

Quantitative Economics, 2019, vol. 10, issue 1, 311-351

Abstract: We characterize the equilibrium of a complete markets economy with multiple agents featuring a preference for the timing of the resolution of uncertainty. Utilities are defined over an aggregate of two goods. We provide conditions under which the solution of the planner's problem exists, and it features a nondegenerate invariant distribution of Pareto weights. We also show that perturbation methods replicate the salient features of our recursive risk‐sharing scheme, provided that higher‐order terms are included.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.3982/QE457

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:quante:v:10:y:2019:i:1:p:311-351

Ordering information: This journal article can be ordered from
https://www.econometricsociety.org/membership

Access Statistics for this article

More articles in Quantitative Economics from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().