Working Paper

Implications of heterogeneity in preferences, beliefs and asset trading technologies for the macroeconomy

Abstract: This paper analyzes and computes the equilibria of economies with large numbers of heterogeneous agents who have different asset trading technologies, preferences, and beliefs. We illustrate the value of our method by using it to evaluate the implications of these heterogeneities through several quantitative exercises.

Keywords: asset pricing; equilibrium survival; heterogeneous beliefs; heterogeneous preferences.;

JEL Classification: D51; D84; E21; G1;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2014-07-14

Number: 2014-14

Pages: 46 pages