Spencer Lyon

Published Papers

Pareto Weights as Wedges in Two-Country Models
with Dave Backus, Chase Coleman, and Axelle Ferriere – JEDC April 2016

In models with recursive preferences, endogenous variation in Pareto weights would be interpreted as wedges from the perspective of a frictionless model with additive preferences. We describe the behavior of the (relative) Pareto weight in a two-country world and explore its interaction with consumption and the real exchange rate.