Grochulski, Borys; Kocherlakota, Narayana - In: Journal of Economic Theory 145 (2010) 6, pp. 2055-2077
In this paper, we consider economies in which agents are privately informed about their skills, which evolve stochastically over time. We require agents' preferences to be weakly separable between the lifetime paths of consumption and labor. However, we allow for intertemporal nonseparabilities...