Rosenblatt-Wisch, Rina; Schenk-Hoppé, Klaus Reiner - Finrisk - 2005
This paper studies the Cass-Koopmans-Ramsey model of optimal economic growth with a representative agent whose preferences for consumption can be gradually varied between the standard CES case and Kahneman and Tversky's prospect utility. The numerical analysis of a specific parametrization shows...