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Recursive Preferences

10 Pages Posted: 13 Oct 2008  

David K. Backus

NYU Stern School of Business; National Bureau of Economic Research (NBER)

Bryan Routledge

Carnegie Mellon University - David A. Tepper School of Business

Stanley E. Zin

New York University (NYU); National Bureau of Economic Research (NBER)

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Date Written: December 2005

Abstract

We summarize the class of recursive preferences. These preferences fit naturally with recursive solution methods and hold the promise of generating new insights into familiar problems. Portfolio choice is used as an example.

Keywords: time preference, risk, uncertainty, ambiguity, robust control, temptation, dynamic consistency, hyperbolic discounting, precautionary saving, equity premium, risk sharing

Suggested Citation

Backus, David K. and Routledge, Bryan and Zin, Stanley E., Recursive Preferences (December 2005). NYU Working Paper No. EC-05-19. Available at SSRN: https://ssrn.com/abstract=1282544

David K. Backus (Contact Author)

NYU Stern School of Business

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National Bureau of Economic Research (NBER)

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Bryan R. Routledge

Carnegie Mellon University - David A. Tepper School of Business ( email )

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Stanley E. Zin

New York University (NYU) ( email )

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New York, NY 10003-711
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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