Crozet, Matthieu (contributor); Koenig, Pamina (contributor) - 2008
, adding insecurity into a framework largely in-
spired from Chaney (2008).
2.1. General assumptions
We assume a world … supplying one unit of
labor and owning a single share of a perfectly diversified portfolio of all firms in the world … between 0 and 1, and n is the total number of varieties of M
in the world. First order conditions give the following demand …