I'm looking for a reference with the most used utility functions in macroeconomic problems of intertemporal optimization. The reference should preferably include a list of properties of those functions, and of why they are usually used.

Any help would be appreciated


1 Answer 1


I think that this article might be helpful:

“Exotic Preferences for Macroeconomists”


They give a thorough explanation of many preference functionals and show their usefulness with macroeconomic applications.

Im not a specialist in macroeconomics, so I dont know the literature that well, but I think that the most used preferences nowadays are the Epstein-Zin preferences. The article I cite discusses thoroughly their properties.

A nice thing this paper has is that it contains detailed comments from Peter Lars Hansen and Ivan Werning among others at the back.

Hope it helps!

  • $\begingroup$ Very Nice! Thanks. This one has a better version nber.org/papers/w10597.pdf $\endgroup$ Commented Oct 16, 2017 at 17:59
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    $\begingroup$ (+1 Forgot) I'll wait a bit more for others answer, before accepting one. ;) $\endgroup$ Commented Oct 16, 2017 at 18:01
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    $\begingroup$ Please note that the version you posted is a working paper version. The one I posted is the final one. I think (after a quick page-skipping) that the main text is the same, the only difference is that the figures are at the end and the comments from other economists are not present. $\endgroup$ Commented Oct 16, 2017 at 18:03

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