Introducing Agent Heterogeneity
Under agent heterogeneity will be understood the heterogeneity of consumers or households, which are taken as equivalent terms. Although some attempts to include different economic sectors have been made (e.g. Gertler and Karadi (2009), Doepke et al. (2015), Jin (2010)), those research paths usually delimited themselves to the introduction of financial intermediaries that manage the households’ savings (e.g Greenwood and Jovanovic (1989), Gertler and Karadi (2009), Kaplan et al. (2016), Gornemann et al. (2012)). When a continuum of firms are introduced, they are usually intermediary firms that produce the input for the final consumption good in the sense of equation (3.1).
Unable to display preview. Download preview PDF.