Search Results

SORT BY: PREVIOUS / NEXT
Keywords:Cost of Business Cycles 

Working Paper
The cost of business cycles with heterogeneous trading technologies

This paper investigates the welfare cost of business cycles in an economy where households have heterogeneous trading technologies. In an economy with aggregate risk, the different portfolio choices induced by heterogeneous trading technologies lead to a larger consumption inequality in equilibrium, while this source of inequality vanishes in an economy without business cycles. Put simply, the heterogeneity in trading technologies amplifies the effect of aggregate output fluctuation on consumption inequality. The welfare cost of business cycles is, therefore, larger in such an economy. In the ...
Working Papers , Paper 2014-15

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

Chien, YiLi 1 items

FILTER BY Jel Classification

E32 1 items

G11 1 items

G12 1 items

FILTER BY Keywords

PREVIOUS / NEXT