Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:heterogenous agent 

Working Paper
Business Cycle Fluctuations in Mirrlees Economies: The Case of i.i.d. Shocks

I consider a real business cycle model in which agents have private information about the i.i.d. realizations of their value of leisure. For the case of logarithmic preferences I provide an analytical characterization of the solution to the associated mechanism design problem. Moreover, I show a striking irrelevance result: That the stationary behavior of all aggregate variables are exactly the same in the private information economy as in the full information case. Numerical simulations indicate that the irrelevance result approximately holds for more general CRRA preferences.
Working Paper Series , Paper WP 2020-04

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

D16 1 items

E60 1 items

F41 1 items

F44 1 items

FILTER BY Keywords

PREVIOUS / NEXT