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Existence Of Stationary Equilibrium In An Incomplete‐Market Model With Endogenous Labor Supply

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  • Shenghao Zhu

Abstract

In this article, I first study an income fluctuation problem with endogenous labor supply. Let β be the agent's time discount factor and R>0 be the constant gross rate of return on assets. For βR=1, I show that the agent's wealth either approaches infinity almost surely or converges to a finite level almost surely. For βR

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  • Shenghao Zhu, 2020. "Existence Of Stationary Equilibrium In An Incomplete‐Market Model With Endogenous Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(3), pages 1115-1138, August.
  • Handle: RePEc:wly:iecrev:v:61:y:2020:i:3:p:1115-1138
    DOI: 10.1111/iere.12451
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    Cited by:

    1. Marcello D'Amato & Christian Di Pietro & Marco M. Sorge, 2023. "Left and Right: A Tale of Two Tails of the Wealth Distribution," CSEF Working Papers 691, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Ma, Qingyin & Stachurski, John & Toda, Alexis Akira, 2022. "Unbounded dynamic programming via the Q-transform," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    3. Damián Pierri, 2023. "Simulations in Models with Heterogeneous Agents, Incomplete Markets and Aggregate Uncertainty," Working Papers 259, Red Nacional de Investigadores en Economía (RedNIE).
    4. Nakajima, Tomoyuki & Takahashi, Shuhei, 2022. "Uninsured idiosyncratic risk and the government asset Laffer curve," Journal of Macroeconomics, Elsevier, vol. 71(C).

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