Pareto weights as wedges in two-country models
Title: Pareto weights as wedges in two-country models
Citation: Journal of economic dynamics and control, 2016, Vol. 72, pp. 98–110
In models with recursive preferences, endogenous variation in Pareto weights would be interpreted as wedges from the perspective of a frictionless model with additive preferences. We describe the behavior of the relative Pareto weight in a two-country world and explore its interaction with consumption and the real exchange rate.
Subject: Recursive preferences; Consumption and risk-sharing; Real exchange rate; F31; F41
Files in this item
There are no files associated with this item.