Why Is Consumption Less Volatile Than Income?
نویسنده
چکیده
منابع مشابه
Underdevelopment of Financial Markets and Excess Consumption Volatility in Developing Countries
This paper aims at explaining, both qualitatively and quantitatively, why consumption growth is substantially more volatile in developing countries than in developed countries. I propose an infinite-horizon stochastic growth model with endogenous financial development, à la Acemoglu and Zilibotti (1997). In this model, micro level indivisibility and aggregate savings determine the degree of div...
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