Showing 1 - 10 of 473
We reformulate Grandmont's and its successors' notion of behavioral heterogeneity such as to get the exact insensitivity of the aggregate budget share function with respect to changes in prices and income, instead of a mere approximate insensitivity. We propose a non parametric set-up such that,...
Persistent link: https://www.econbiz.de/10005422866
Persistent link: https://www.econbiz.de/10005406569
Persistent link: https://www.econbiz.de/10005607351
This paper studies the effect of combining different insurance schemes on the efficiency of consumption smoothing in an … (1988). The risk averse agent's savings play the role of a collateral, thereby improving consumption smoothing. Furthermore … savings and debt substitutable. If these assumptions are relaxed, consumption smoothing worsens but is still better than what …
Persistent link: https://www.econbiz.de/10005100656
Persistent link: https://www.econbiz.de/10001065205
Persistent link: https://www.econbiz.de/10002083886
Persistent link: https://www.econbiz.de/10002688726
Persistent link: https://www.econbiz.de/10003885060
Persistent link: https://www.econbiz.de/10003583224
Short lived arbitrage opportunities arise when prices adjust with a lag to new information. They are toxic because they expose dealers to the risk of trading at stale quotes. Hence, theory implies that more frequent toxic arbitrage opportunities and a faster arbitrageurs' response to these...
Persistent link: https://www.econbiz.de/10010499534