The Term Structure of Interest Rates in a Pure Exchange Economy with Heterogeneous Investors

This paper presents an equilibrium model of the term structure of interest rates when investors have heterogeneous preferences. The basic model considers a pure exchange economy of two classes of investors with different (but constant) relative risk-aversion and gives closed-form solutions to bond prices. We use the model to examine the effect of preference heterogeneity on the behavior of bond yields. Extensions to cases of more than two investors are also considered.

Conditions implying regularity of the three dimensional Navier-Stokes equation

We obtain logarithmic improvements for conditions for regularity of the Navier-Stokes equation, similar to those of Prodi-Serrin or Beale-Kato-Majda. Some of the proofs make use of a stochastic approach involving Feynman-Kac like inequalities. As part of the our methods, we give a different approach to a priori estimates of Foias, Guillope and Temam.Comment: Also available at http://www.math.missouri.edu/~stephen/preprints/ (Changes: this is a substantial rewrite of the previous version.