Bommier, Antoine; Grand, François Le - CER-ETH Center of Economic Research, Department of … - 2013
stationary, monotonic and well-ordered in terms of risk aversion. We prove that the class of preferences introduced by Hansen and … shift from the traditional approach to studying the role of risk aversion in recursive problems. We also provide … applications, in which we discuss the impact of risk aversion on asset pricing and risk sharing. …