The aggregation of individual random AR(1) models generally leads to an AR(∞∞) process. We provide two consistent …

The aggregation of individual random AR(1) models generally leads to an AR(∞) process. We provide two consistent …

approaches found in the empirical literature on aggregation and the real exchange rate. In particular, we reconcile the …

literature. We discuss issues related to the functional form, heterogeneity, spurious regressions and spatial dependence to …

literature. We discuss issues related to the functional form, heterogeneity, “spurious” regressions and spatial dependence to …

and indefinitely satisfied (sustainable heterogeneity). With appropriate government interventions, such a path is always …

(sustainable heterogeneity). With appropriate government interventions, such a path is always achievable and is uniquely socially …

heterogeneity. As is well known, heterogeneity in time preference results in substantial inequality. This paper shows that, even if … heterogeneous households are equally and indefinitely satisfied, and heterogeneity is sustainable on this path. The existence of a … by relying only on markets. Sustainable heterogeneity is politically fragile and requires rational―not unconditional …

heterogeneity in revealed preferences.) Actual trade in the constructed economies using a tatonnement market institution closely …