Dynamic Resource Management: Intertemporal Substitution and Risk Aversion
研究递归偏好下的资源管理，发现降低跨期替代弹性会加剧资源使用对存量的依赖，而增加风险厌恶则减少或不变资源使用，跨期替代对决策规则影响显著。
Abstract We consider resource management with recursive preferences. These generalize expected utility while eliminating some well‐known difficulties. Monotonicity and convergence properties of optimal decision rules are established using lattice programming methods. Empirical applications are rangeland and groundwater management. Decreasing the intertemporal elasticity of substitution implies greater (lower) resource usage with limited (abundant) stocks. This moderates stock evolution and stabilizes consumption. Increasing risk aversion implies the same or reduced usage over the state space. Intertemporal substitution has a substantial effect on the optimal decision rule and a moderate effect on the limiting distribution, while risk aversion has a very small effect.