Utility Theory

    At the Institute, we're expanding the way economists think about human welfare.
    By exploring the philosophical and psychological foundations of Utility Theory, we can better understand human happiness and behavior.

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    Nonparametric Euler Equation Identication and Estimation

    We consider nonparametric identification and estimation of pricing kernels, or equivalently of marginal utility functions up to scale, in consumption based asset pricing Euler equations. Ours is the first paper to prove nonparametric identification of Euler equations under low level conditions (without imposing functional restrictions or just assuming completeness). Read more