Jappelli, Tullio (contributor); Padula, Mario (contributor); … - 2007
, there exists a unique and stable value of x (which
we call x∗ and term, again for brevity, “target wealth to permanent … toward to target” (Carroll, 2001, p. 33).3 In our
notation, if (xt −x∗) < 0, then xt grows in expectation. If instead (xt −x … insight.
At any given point in time, households differ in their value of the wealth
gap (xt − x∗). A first source of …