Niguez, Trino-Manuel and Paya, Ivan and Peel, David and Perote, Javier (2012) On the stability of the constant relative risk aversion (CRRA) under high degrees of uncertainty. Economics Letters, 115 (2). pp. 244-248. ISSN 0165-1765
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Official URL: http://dx.doi.org/10.1016/j.econlet.2011.12.049
Abstract
Growth models under uncertainty and constant relative risk aversion (CRRA) utility are fragile in explaining consumers’ choice, as equilibrium consumption is dependent on distributional assumptions. We show that, under semi-nonparametric distributions, general equilibrium models are stable, as the existence of expected utility is guaranteed.
| Item Type: | Article |
|---|---|
| Journal or Publication Title: | Economics Letters |
| Subjects: | H Social Sciences > HB Economic Theory |
| Departments: | Lancaster University Management School > Economics |
| ID Code: | 55626 |
| Deposited By: | ep_importer_pure |
| Deposited On: | 10 Jul 2012 10:23 |
| Refereed?: | Yes |
| Published?: | Published |
| Last Modified: | 14 Jan 2013 14:46 |
| Identification Number: | |
| URI: | http://eprints.lancs.ac.uk/id/eprint/55626 |
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