… This paper studies the effects of shocks … shock, which we call an incompleteness shock.
Even if we allow our agents to hedge the incompleteness shock itself, we find that these shocks …

… importance of market incompleteness is that in models with transitory shocks, patient agents,
and long time horizons a single bond suffices to smooth out negative endowment shocks. In …

This paper studies how household heterogeneity shapes the response to commodity price
shocks. Using data from Chile and other emerging economies, we document that (i) low/high-…

… In the second chapter, we propose a new way of explaining business cycles from news shocks
… The rich is more susceptible to shocks in exogenous productivity than before, and hence …

… catalog incompleteness in the first times after the main shock… than the main shock magnitude
M m minus 3 units. For T s … by catalog incompleteness in the first times after the main shock. …

… Whether shocks are amplified or not by market incompleteness depends on its impact on
the Φ N and Φ D . It follows from (19.42)–(19.44) that:(19.54) ∂ Γ η A ∂ Θ i = γ − 1 γ ρ A ( Φ N …

… monetary shock and CRRA utility. I also study how different Frisch elasticities affect the
transmission of the shock. Then, I show that (i) distortions generated by a positive shock decrease …

… incompleteness will not matter (in the sense that welfare losses tend to 0 as the discount
factor tends to 1), provided shocks … 1 and 2 that market incompleteness may matter when there …

… When there is an intermediate level of market incompleteness and sufficient investor … At
the outset of period t, the investor receives a random wealth shock. A fraction at of this shock is …

… On the x-axis is the ratio of the standard deviation of the idiosyncratic shock to that of the
aggregate shock, with the limiting heterogenous and homogenous cases at the left and right-…