This paper analyses general equilibrium models with finite heterogeneous agents having exogenous expectations on endogenous uncertainty. It is shown that there exists a recursive equilibrium with the state space consisting ...

Economic evolution is said to occur when economic structures change. That is, when the institutional and/or technological rules of the society are replaced by new ones. As with evolutionary phenomena in other fields it is ...

This work proves the existence of an equilibrium for an infinite horizon economy where trade takes place sequentially over time. There exist two types of agents: the first correctly anticipates all future contingent ...

Despite lacking policies targeting the extension of working life, Chile is the Latin American country that has exhibited the largest increase in the labor force participation rate of people aged 65+ in the last two decades. ...

Whether human capital increases or decreases wage uncertainty is an open question from an empirical standpoint. Yet, most policy prescriptions regarding human capital formation are based on models that impose riskiness on ...

On the first chapter of this thesis we provide an axiomatization of Second Order Expected Utility model (SOEU) that does not restrict the decision maker’s attitude towards subjective uncertainty moreover, the subjective ...

We propose a model where the probability that courts will enforce a statute is endogenous to the statute itself. We obtain, Örst, that the enactment of legislation prohibiting something might raise the probability that ...

Purpose: The purpose of this paper is to value an innovation project derived from a product diversification strategy in the agricultural auto parts sector, considering uncertainties and flexibility as sources of value for ...

The paper extends the cost of altruism model, analyzed in Lisboa (1999). There are three types of agents: households, providers of a service and insurance companies. Households have uncertainty about future leveIs of income. ...