This paper analyzes the expected life-time utility and the hedging demands in an exchange only, representative agent general equilibrium under incomplete information. We derive an expression for the investor's expected life-time utility, and analyze his hedging demands for intertemporal changes...

This paper analyzes the term structure of interest rates in an exchange-only Lucas (Econometrica 46:1429–1445, <CitationRef CitationID="CR32">1978</CitationRef>) economy where consumers learn about a stochastic growth rate through observations of the endowment process and an external public signal. We allow for deluded consumers, who...</citationref>