Intertemporal equilibria with Knightian uncertainty

Dana R-A, Riedel F (2013)
Journal Of Economic Theory 148(4): 1582-1605.

Download
Es wurde kein Volltext hochgeladen. Nur Publikationsnachweis!
Zeitschriftenaufsatz | Veröffentlicht | Englisch
Autor
;
Abstract / Bemerkung
We study a dynamic and infinite-dimensional model with incomplete multiple prior preferences. In interior efficient allocations, agents share a common risk-adjusted prior and subjective interest rate. Interior efficient allocations and equilibria coincide with those of economies with subjective expected utility and priors from the agents' multiple prior sets. A specific model with neither risk nor uncertainty at the aggregate level is considered. Risk is always fully insured. For small levels of ambiguity, there exists an equilibrium with inertia where agents also insure fully against Knightian uncertainty. When the level of ambiguity exceeds a critical threshold, full insurance no longer prevails and there exist equilibria with inertia where agents do not insure against uncertainty at all. We also show that equilibria with inertia are indeterminate. (C) 2013 Elsevier Inc. All rights reserved.
Erscheinungsjahr
Zeitschriftentitel
Journal Of Economic Theory
Band
148
Zeitschriftennummer
4
Seite
1582-1605
ISSN
PUB-ID

Zitieren

Dana R-A, Riedel F. Intertemporal equilibria with Knightian uncertainty. Journal Of Economic Theory. 2013;148(4):1582-1605.
Dana, R. - A., & Riedel, F. (2013). Intertemporal equilibria with Knightian uncertainty. Journal Of Economic Theory, 148(4), 1582-1605. doi:10.1016/j.jet.2013.04.005
Dana, R. - A., and Riedel, F. (2013). Intertemporal equilibria with Knightian uncertainty. Journal Of Economic Theory 148, 1582-1605.
Dana, R.-A., & Riedel, F., 2013. Intertemporal equilibria with Knightian uncertainty. Journal Of Economic Theory, 148(4), p 1582-1605.
R.-A. Dana and F. Riedel, “Intertemporal equilibria with Knightian uncertainty”, Journal Of Economic Theory, vol. 148, 2013, pp. 1582-1605.
Dana, R.-A., Riedel, F.: Intertemporal equilibria with Knightian uncertainty. Journal Of Economic Theory. 148, 1582-1605 (2013).
Dana, Rose-Anne, and Riedel, Frank. “Intertemporal equilibria with Knightian uncertainty”. Journal Of Economic Theory 148.4 (2013): 1582-1605.