Zin, Stanley; Tallarini, Thomas - Society for Computational Economics - SCE - 2005
We solve the optimal saving/portfolio-choice problem in an intertemporal recursive utility framework. Our solution to …-cycle patterns, and (iv) portfolio adjustment costs. We use Weil's (1993) isoelastic/constant absolute risk averse model as a … addition, since the portfolio choice is indeterminate in the baseline, we apply bifurcation methods to center our approximation …