Aguiar, Mark (contributor); Gopinath, Gita (contributor) - 2004
trades a single good and single asset, a one period bond, with the rest of the world.
The representative agent has CRRA …
denote the net foreign assets of the agent at time t. A negative value of a implies
the economy is a net debtor. Each bond … the same as the return on a 10 year U.S. Treasury Bond. Of course, it is difficult to
estimate ex ante returns from a …