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Exotic Preferences for Macroeconomists

Listed author(s):
  • David Backus
  • Bryan Routledge
  • Stanley Zin

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.

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File URL: http://pages.stern.nyu.edu/%7Edbackus/Exotic/BRZ%20exotic%20latest.pdf
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Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 04-20.

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Date of creation: 2004
Handle: RePEc:ste:nystbu:04-20
Contact details of provider: Postal:
New York University, Leonard N. Stern School of Business, Department of Economics, 44 West 4th Street, New York, NY 10012-1126

Phone: (212) 998-0860
Fax: (212) 995-4218
Web page: http://w4.stern.nyu.edu/economics/

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