Marcet, Albert; Obiols-Homs, Francesc; Weil, Philippe - Barcelona Graduate School of Economics (Barcelona GSE) - 2003
We explore the accumulation of capital in the presence of limited insurance against idiosyncratic shocks, borrowing constraints and endogenous labor supply. In the exogenous labor supply case (e.g. Aiyagari 1994, Huggett 1997), the presence of limited insurance increases the demand for savings...