Asset prices and wealth inequality in a simple model with idiosyncratic shocks
AbstractThis paper analytically solves a heterogeneous agent model with idiosyncratic
shocks to marginal utility of consumption and explores the effects of the borrowing
constraint on the price of the asset, the composition of borrowers and lenders in
the credit market, and wealth inequality. Results are derived in a stylized model
and in a pedagogical fashion.
How to Cite
Salas, S. (2017). Asset prices and wealth inequality in a simple model with idiosyncratic shocks. Estudios de Economía, 44(1), 105-119. Retrieved from http://www.estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/45216/47278