Essays about: "Zhiheng Xu"

Found 1 essay containing the words Zhiheng Xu.

  1. 1. Happiness is the same price as red bottoms? Welfare Cost of Business Cycle with Consumption Disasters

    University essay from Handelshögskolan i Stockholm/Institutionen för nationalekonomi

    Author : Zhiheng Xu; [2020]
    Keywords : welfare cost; business cycles; heterogeneous agents; Sweden; income disparity;

    Abstract : This paper constructs a model, calibrated towards the Swedish economy, with heterogeneous agents in the economy who make decisions to maximize their expected utilities, subjected both to aggregate risks and idiosyncratic risks. In setting up the model, I try to match the unit-root nature of total factor of productivity and the unit-root component in the aggregate consumption time series, with rare consumption disasters incorporated. READ MORE