Implications of Heterogeneity in Preferences, Beliefs and Asset Trading Technologies in an Endowment Economy

Implications of Heterogeneity in Preferences, Beliefs and Asset Trading Technologies in an Endowment Economy

By
YiLi Chien, Harold Cole, Hanno Lustig
Review of Economics Dynamics. April
2016, Vol. 20, Pages 215-239

This paper analyzes and computes the equilibria of economies with large numbers of heterogeneous agents who have different asset trading technologies, preferences and beliefs. We illustrate the value of our method by using it to evaluate the implications of these heterogeneities through several quantitative exercises.