Representation of Preference Orderings with an Infinite Horizon : Time-additive Separable Utility in Continuous Time
Nobusumi Sagara, 信純 佐柄 · Hosei University Repository (Hosei University) · 2013
This paper proposes an axiomatic approach in a continuous-time framework for representing preference orderings with an infinite horizon in terms of time-additive separable (TAS) utility. To deal with divergent paths that emerge in endogenous growth models, we introduce several new axioms for preference orderings and exploit an integral representation of nonlinear functionals on Lp-spaces to obtain TAS utility functions with constant discount rates. Moreover, it is demonstrated that preference orderings given by recursive utility functionals are representable by means of TAS utility functions.