We study a two-sector general equilibrium model of housing andnon-housing production where heterogenous households face limitedopportunities to insure against aggregate and idiosyncratic risks. Themodel generates large variability in the national house price-rentratio, both because it fluctuates...

This paper analyzes the general equilibrium implications of performance fees linking the compensation of fund managers to the return of the managed portfolio relative to that of a benchmark portfolio. We find that symmetric ("fulcrum") performance fees distort the allocation of managed...