← Search

Rince Preferences

Roger E. A. Farmer

University of California, Los Angeles

Quarterly Journal of Economics 1990

This paper presents a class of preferences that yield closed-form solutions to dynamic stochastic choice problems. These preferences are based on a set of axioms that were proposed by Kreps and Porteus. The Kreps-Porteus axioms allow one to separate an agent's attitudes to risk from his or her intertemporal elasticity of substitution. RINCE preferences have the properties of Risk Neutrality and Constant Elasticity of substitution.

DOI
10.2307/2937818
Volume
105 (1)
Pages
43
Export
BibTeX
Sources
openalex crossref