Questions tagged [heterogeneity]

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Why does a model that is used for policy analysis needs its shocks and parameters to be structural (= invariant) to the shock under consideration?

In their paper, " New Keynesian Models: Not Yet Useful for Policy Analysis" V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan argue that one needs a structural model in order to analyse the ...
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Wealth Distribution and market incompletness

From the literature of incomplete market (e.g. Aiyagary 1993,1994), it seems to be the case that: With complete markets, the capital distribution in the final steady state depends on the distribution ...
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Can heterogeneous prices be consistent with competitive equilibrium?

I do not want to put many constraints on the structure of the problem, except by defining a competitive equilibrium as such where firms are price takers in the factor and good(s) market, and, perhaps (...
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Continuum limit of a weighted mean of heterogeneous discount factors

I try to find the limit of the following expression of a weighted mean of a series of discount rate $\rho_{i}$ Here is the expression ; $$\rho_{\eta}\left(t\right)=\frac{\sum_{i}^{N}\rho_{i}\left(\...