ABSTRACT : The heterogeneity friction in incomplete markets seriously restricts the intertemporal risk sharing mechanism of micro agents. In this paper, we construct a recursive preference dynamic optimal contract model with nested habit formation and prospectively introduce a structured estimation strategy. Through non-parametric matching and simulated moment estimation (SMM) of macro and micro cross-boundary empirical data, the statistical decoupling of core preference parameters is successfully achieved. This study not only provides a solid structural measure for quantifying contractual block and measuring systematic resource misallocation, but also provides a scientific mirror for reshaping long-term incentive mechanism.
Boxuan Xu (Tue,) studied this question.