Optimal Consumption for Recursive Preferences with Local Substitution - the Case of Certainty
Frank Riedel and
Additional contact information
Hanwu Li: Center for Mathematical Economics, Bielefeld University
Frank Riedel: Center for Mathematical Economics, Bielefeld University
Shuzhen Yang: Center for Mathematical Economics, Bielefeld University
No 670, Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University
We characterize optimal consumption policies in a recursive intertemporal utility framework with local substitution. We establish existence and uniqueness and a version of the Kuhn-Tucker theorem characterizing the optimal consumption plan. An explicit solution is provided for the case when the felicity function is of the Epstein-Zin’s type.
Keywords: Recursive utility; Hindy-Huang-Kreps preference; Intertemporal Substitution; Utility maximization (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://pub.uni-bielefeld.de/download/2967056/2967057 First Version, 2022 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bie:wpaper:670
Access Statistics for this paper
More papers in Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University Contact information at EDIRC.
Bibliographic data for series maintained by Bettina Weingarten ().