The risk-free rate in heterogeneous-agent incomplete-insurance economies
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چکیده
منابع مشابه
The risk-free rate in heterogeneous-agent incomplete-insurance economies
Why has the average real risk-free interest rate been less than one percent? The question is motivated by the failure of a class ofcalibrated representative-agent economies to explain the average return to equity and risk-free debt. I construct an economy where agents experience uninsurable idiosyncratic endowment shocks and smooth consumption by holding a risk-free asset. I calibrate the econo...
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ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 1993
ISSN: 0165-1889
DOI: 10.1016/0165-1889(93)90024-m