Maliar, Lilia; Maliar, Serguei - In: Bulletin of Economic Research 56 (2004) 2, pp. 201-206
This paper studies a discrete-time utility maximization problem of an infinitely-lived quasi-geometric consumer whose labour income is subject to uninsurable idiosyncratic productivity shocks. We restrict attention to a first-order Markov recursive solution. We show that under the assumption of...