WP 2011-04 Multiattribute Utility Theory, Intertemporal Utility and Correlation Aversion

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Forthcoming – International Economic Review

ABSTRACT: Convenient assumptions about qualitative properties of the intertemporal utility function have generated counter-intuitive implications for the relationship between atemporal risk aversion and the intertemporal elasticity of substitution. If the intertemporal utility function is additively separable then the latter two concepts are the inverse of each… more »