Preferences Preferences are defined over streams of consumption and leisure: U(X)=U(x0,x1,x…),x,=(C,2) Recursive preferences:U,=W(x,,U) Additively separable preferences: U,(x)=∑U(x,) Recursive AND additively separable: U,=U(x,)+BU,+1=∑BU(x+） T=0 电子科大经管学院马捷 元元兄Preferences  Preferences are defined over streams of consumption and leisure:  Recursive preferences:  Additively separable preferences:  Recursive AND additively separable: 电子科大经管学院 马捷 4 (x) ( , ,... ,...), ( , ) 0 1 t t t t U U x x x x  c z ( , ) t  t Ut1 U W x     0 (x) ( ) t t t U U x         0 1 ( ) ( )    t t  t  t U U x U U x