Journal title
Estudios de Economía

   
ARTICLE
TITLE

Asset prices and wealth inequality in a simple model with idiosyncratic shocks

SUMMARY

This paper analytically solves a heterogeneous agent model with idiosyncraticshocks to marginal utility of consumption and explores the effects of the borrowingconstraint on the price of the asset, the composition of borrowers and lenders inthe credit market, and wealth inequality. Results are derived in a stylized modeland in a pedagogical fashion.

PAGES
pp. 105 - 119

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