Heterogeneous households

Publication date: 1 Feb 2018 | Publication type: NIESR Discussion Paper | Theme: Macroeconomics | Authors: Chadha, J S | External authors: Corrado, G, Corrado, L | JEL classification: E31, E40, E51 | NIESR discussion paper number: 486
We decompose aggregate consumption of heterogeneous consumers by modelling both savers and their links to collateral constrained borrowers through a bank which prices credit risk. Savers own both firms and the commercial bank while borrowers require loans from the commercial bank to effect their...