In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches: The second-order act approach à la Klibanoff,...

This paper axiomatically characterizes how society under uncertainty should select collective belief systematically and how much society should be collectively ambiguity averse, where individuals are ambiguity-averse and their beliefs disagree in general. Our characterization allows two kinds of...