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- W13278889 abstract "In an exchange economy under uncertainty populated by consumers having state-contingent utility functions, we analyze the nature of the ecient risk-sharing rules and the representative consumer’s state-contingent utility function. We show that the representative consumer’s responsiveness to state variables will typically depend on aggregate consumption levels even when the individual consumers’ responsiveness do not depend on own consumptions. We also nd that the heterogeneity in the individual consumers’ responsiveness to state variables gives rise to a convexifying eect on the representative consumer’s utility function, in a sense to be made precise. We also present applications of this result to the cases of heterogeneous beliefs and heterogeneous impatience." @default.
- W13278889 created "2016-06-24" @default.
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- W13278889 date "2008-01-01" @default.
- W13278889 modified "2023-09-25" @default.
- W13278889 title "Aggregation of State-Dependent Utilities" @default.
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