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In Epstein-Zin recursive preferences, the Kreps-Porteus certainty equivalent is defined by \begin{equation} \mathcal{R}_t(V_{t+1}) = (\mathbb{E}_t V_{t+1}^{1 - \gamma})^{1 /(1 - \gamma)}. \end{equation} where $\gamma$ governs risk aversion and $V_{t+1}$ is utility tomorrow, as opposed to some level of consumption.

Is there some reason/intuition for taking a certainty equivalent of utilities rather than bundles that has something to do with Epstein-Zin? Is it due to the preference over the timing of resolution? Thanks!

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