We compare local and global polynomial solution methods for DSGE models with Epstein-Zin-Weil utility. We show that model implications for macroeconomic quantities are relatively invariant to choice of solution method but that a global method can yield substantial improvements for asset prices...

Utility function is the most important concept in economic theory. In academic literature, utility functions can take various forms. We prove that under a very general condition, utility function is the logarithmic function

In this paper, we characterize a Rawlsian ordering over infinite utility streams using a fairness principle called Hammond Equity, as well as a weak efficiency principle, Sup Continuity, and a condition that links finite and infinite settings of distributive justice called Preference Continuity