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| Tatsuya Tabata |
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| ''Co-monotonic allocation with heterogeneous agents and non-linear-discounting utility: an example'' |
| ( 2021, Vol. 41 No.3 ) |
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| Many dynamic macroeconomics models employ time additively separable utility functions although capital ownership accrues to the most patient consumer. To modify this result, previous studies employing recursive utility show consumption and saving are co-monotonic to the degree of each consumer's time preference in the long run. Although they run in continuous time model, we demonstrate equivalent results in discrete time model. |
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| Keywords: Recursive Utility, KDW Utility, Co-monotonic Allocation |
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
C6 - Mathematical Methods and Programming: General |
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| Manuscript Received : Sep 17 2021 | | Manuscript Accepted : Sep 17 2021 |
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