Krebs, Tom (contributor); Wilson, Bonnie (contributor) - 2002 - [Elektronische Ressource]
and aggregate shocks is denoted by and , respectively. Clearly, the
(ordered) set of all histories defines an event tree … with date-events (nodes) . Throughout the
analysis, we fix this event tree. We assume that all households observe at time … the date-event ,
denoted by , is the same for all households. For simplicity, we assume for all
date-events . We make …