| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5098127 | Journal of Economic Dynamics and Control | 2016 | 13 Pages |
Abstract
In models with recursive preferences, endogenous variation in Pareto weights would be interpreted as wedges from the perspective of a frictionless model with additive preferences. We describe the behavior of the relative Pareto weight in a two-country world and explore its interaction with consumption and the real exchange rate.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
David Backus, Chase Coleman, Axelle Ferriere, Spencer Lyon,