Open AccessInternational Robust Disagreement
Author(s) -
Riccardo Colacito,
Mariano Massimiliano Croce
Publication year - 2012
Publication title -
american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.936
H-Index - 297
eISSN - 1944-7981
pISSN - 0002-8282
DOI - 10.1257/aer.102.3.152
Subject(s) - economics , outcome (game theory) , consumption (sociology) , preference , class (philosophy) , general equilibrium theory , revealed preference , microeconomics , econometrics , artificial intelligence , computer science , social science , sociology
We characterize the equilibrium of a two-country, two-good economy in which agents have opposite preference bias toward one of the two consumption goods and fear model misspecification. We document that disagreement about endowments' growth prospects is a persistent endogenous outcome of this class of economies.
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