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A Life-Cycle Model with Ambiguous Survival Beliefs
Based on a cognitive notion of neo-additive capacities reflecting likelihood insensitivity with respect to survival chances, we construct a Choquet Bayesian learning model over the life-cycle that generates a motivational ...
Endogenous Grids in Higher Dimensions: Delaunay Interpolation and Hybrid Methods
This paper investigates extensions of the method of endogenous gridpoints (ENDGM) introduced by Carroll (2006) to higher dimensions with more than one continuous endogenous state variable. We compare three different ...
Optimal Taxes on Capital in the OLG Model with Uninsurable Idiosyncratic Income Risk
We characterize the optimal linear tax on capital in an Overlapping Generations model with two period lived households facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general ...