Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957533 | Journal of Economic Theory | 2007 | 14 Pages |
Abstract
We consider an exchange economy with time-inconsistent consumers whose preferences are additively separable. If consumers have identical discount factors, then allocations that are Pareto efficient at the initial date are also renegotiation-proof. In an economy with a sequence of markets, competitive equilibria are Pareto efficient in this sense, and for generic endowments, only if preferences are locally homothetic.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Erzo G.J. Luttmer, Thomas Mariotti,