Molico, Miguel; Zhang, Yahong - Society for Computational Economics - SCE - 2006
assets, in particular, capital. In this paper we present a model where the optimal portfolio allocation decision of agents is …. Capital goods are assumed to be type-specific and traded in a centralized market. Uninsurable idiosyncratic uncertainty in … equilibrium patterns of exchange, the distribution of wealth, capital accumulation and welfare. In particular, we show that a …