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Occupational specificity of human capital motivates an important role of occupational reallocation for the economy's response to shocks and for the dynamics of inequality. We introduce occupational mobility, through a random choice model with dynamic value function optimization, into a...
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externalities induced by a collateral constraint. Limiting the loan-to-value ratio benefits only few unconstrained borrowers and …
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) precautionary savings and (ii) production externalities. By solving the Ramsey problem analytically along the entire transitional …
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