The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jul, 2017, Volume 85, Issue 4
https://doi.org/10.3982/ECTA13880
p. 1219-1238
Felix Kübler, Herakles Polemarchakis
The demand for assets as prices and initial wealth vary identifies beliefs and attitudes towards risk. We derive conditions that guarantee identification with no knowledge either of the cardinal utility index (attitudes towards risk) or of the distribution of future endowments or payoffs of assets; the argument applies even if the asset market is incomplete and demand is observed only locally.
This supplement contains Appendices A and B for the manuscript.
