Asset price fluctuations without aggregate shocks

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Asset price fluctuations without aggregate shocks

We analyze the pricing of a productive asset in a class of dynamic exchange economies with heterogeneous, infinitely–lived agents, and self–enforcing intertemporal trades. Individual incomes fluctuate and are correlated; preferences, dividends and aggregate income are fixed. Almost all economies in this class have a unique stationary Markovian equilibrium with fluctuations in asset prices. As t...

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ژورنال

عنوان ژورنال: Journal of Economic Theory

سال: 2007

ISSN: 0022-0531

DOI: 10.1016/j.jet.2006.06.005