Discussion

摘要

Martin Schneider began by responding to the discussants' comments. He said he did not view the Epstein-Zin-Weil framework as a tool to get an additional free parameter. Rather he viewed this framework as making it possible for researchers to make more realistic assumptions about preferences toward the temporal distribution of risk. He noted that in the standard separable expected utility model, agents are indifferent about the temporal distribution of risk. He felt that this was a very implausible feature of the standard model.