| Reference : Preferences and the Dynamic Representative Consumer |
| Reports : External report | |||
| Business & economic sciences : General economics & history of economic thought | |||
| http://hdl.handle.net/10993/12224 | |||
| Preferences and the Dynamic Representative Consumer | |
| English | |
Koulovatianos, Christos  [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >] | |
| 2005 | |
| University of Vienna | |
| 0505 | |
| [en] This paper provides families of time-separable, twice continuously differentiable, and strictly concave utility functions of a group of consumers that are both suffcient and necessary in order to have linear aggregation in a single-commodity-type deterministic dynamic environment, in the presence of consumer wealth-, labor-productivity, and preference heterogeneity, for alternative settings where the rates of time preference can be the same or different across consumers. The employed concept of linear aggregation pertains the existence of a representative consumer with a time-separable utility function. It is proved that when the rates of time preference are choice-independent and heterogeneous across consumers, a representative consumer exists if, and only if, the momentary utility functions of all consumers are exponential. Results are also provided for, (i) common across consumers choice-independent rates of time preference, and, (ii) heterogeneous choice-dependent rates of time preference, and compared with previously identified sufficient conditions for aggregation in the existing literature. | |
| http://hdl.handle.net/10993/12224 | |
| http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0505.pdf |
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