Ando, Yoshiki; Krueger, Dirk; Uhlig, Harald - National Bureau of Economic Research - 2023
In this paper we study the neoclassical growth model with idiosyncratic income risk and aggregate risk in which risk … and unemployment) we show that the equilibrium can be characterized in closed form, despite the fact that it features a …, inequality over the business cycle and asset pricing, and derive conditions under which our model has identical, as well as …