Download or read book Exotic Preferences for Macroeconomists written by David Backus and published by . This book was released on 2004 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: We provide a user's guide to exotic' preferences: nonlinear time aggregators, departures from expected utility, preferences over time with known and unknown probabilities, risk-sensitive and robust control, hyperbolic' discounting, and preferences over sets ( temptations'). We apply each to a number of classic problems in macroeconomics and finance, including consumption and saving, portfolio choice, asset pricing, and Pareto optimal allocations.