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neoclassical theory, in 1956 Robert Solow constructed a simple, clean, and smooth-functioning "design" model that served many …
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This paper examines a continuous-time intertemporal consumption and portfolio choice problem for an investor with Du e and Epstein (1992a)'s recursive preferences who worries about model misspecification (model uncertainty) and wants to seek robust decision rules. The expected excess return of a...
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