In this short paper, uncertainties on resource stock and on technical progress are introduced into an intertemporal equilibrium model of optimal extraction of a non-renewable resource. The representative consumer maximizes a recursive utility function which disentangles between intertemporal elasticity of substitution and risk aversion. A closed-form solution is derived for both the optimal ext...

In recent years, with global sustainable economic development, poverty is still one of the most pressing issues facing in the world. Many poor families have to face in their daily lives the complex and difficult economic decisions, and often the poor and the rich in these intertemporal preferences are different. Studies show that poverty will impact intertemporal choice through two intermediary...

Economics has experienced an inflow of fresh ideas following the addition of elements from psychology into economic models. A recent literature incorporates intrapersonal tensions into these models. The present paper provides a step in this direction. Our basic premise is the existence of three types of brain-based conflicts: first, a conflict between the information available in different area...

Using a recursive empirical model of the real interest rate, GDP growth and the primary government deficit in the United States, I solve for the ergodic distribution of the debt/GDP ratio. If such a distribution exists, the government is satisfying its intertemporal budget constraint. One key finding is that historical fiscal policy would bring the current high-debt ratio back to its normal lev...