Precautionary saving and aggregate demand
预防性储蓄与总需求
We construct, and then estimate by maximum likelihood, a tractable dynamic stochastic general equilibrium model with incomplete insurance and heterogenous agents. The key feature of our framework is that cross-sectional heterogeneity remains finite dimensional. The solution to the model thus admits a state-space representation that can be used to recover the distribution of the model's parameters. Household heterogeneity expands the set of observables to cross-sectional…