positively linked to the conditional volatility of future real activity and of equity returns. The joint information in sectoral …

heterogeneity across individuals can have a strong stabilizing effect. We illustrate this in a stylized two-sector economy with an …

propensity held high mortgage debt. The heterogeneity is concentrated in a few non-durable categories and a handful of `new …

heterogeneity in risks. I distinguish between heterogeneity in risk preferences and risk perceptions underlying the unexplained … heterogeneity, I find that the welfare conclusions regarding adversely selected markets are substantially different. The source of … heterogeneity is also essential for the evaluation of different interventions intended to correct inefficiencies due to adverse …

recently re-emerged due to the availability of an appropriate and parsimonious framework to deal with firm heterogeneity …. Within this framework we show that non-separable utility, variable demand elasticity and endogenous firm heterogeneity cause … that the extent of the errors depends on the degree of firm heterogeneity. In particular, the inefficiency of the market …

This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … endogenous markups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to … `evenness'. Accordingly, the role of firm heterogeneity in selection models of agglomeration can not be fully understood without …