Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967173 | Journal of Monetary Economics | 2012 | 18 Pages |
Abstract
⺠We study household dynamic choice problem when portfolio adjustment is costly. ⺠Our model generates a demand for both risky and riskless assets. ⺠There are adjustment costs for changes in holdings of the risky asset. ⺠We estimate parameters using simulated method of moments. ⺠The household's response to shocks is nonlinear and asymmetric.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Yosef Bonaparte, Russell Cooper, Guozhong Zhu,