Existence of the wealth-consumption ratio in asset pricing models with recursive preferences

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Erscheinungsjahr:
2024
Medientyp:
Text
Beschreibung:
  • Modern asset pricing models combine recursive preferences with complex dynamics for the underlying consumption process. Existence of solutions is, for many of these models, an unsettled question. This paper introduces a novel technique to prove existence and non-existence as well as uniqueness for models with recursive preferences. The approach applies to many models of interest, such as those with long-run consumption risks, with stochastic volatility and jumps, with time-varying consumption disasters, and with smooth ambiguity aversion and learning. Collectively the proven results settle the existence question for many of today's leading asset pricing models.
Lizenz:
  • info:eu-repo/semantics/openAccess
Quellsystem:
Forschungsinformationssystem der UHH

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oai:www.edit.fis.uni-hamburg.de:publications/513bb442-5647-439a-8ac0-87837a1c8266