heterogeneity across individuals can have a strong stabilizing effect. We illustrate this in a stylized two-sector economy with an …

propensity held high mortgage debt. The heterogeneity is concentrated in a few non-durable categories and a handful of `new …

heterogeneity in risks. I distinguish between heterogeneity in risk preferences and risk perceptions underlying the unexplained … variation. Heterogeneous risk perceptions induce a systematic difference between the revealed and actual value of insurance as a … heterogeneity, I find that the welfare conclusions regarding adversely selected markets are substantially different. The source of …

recently re-emerged due to the availability of an appropriate and parsimonious framework to deal with firm heterogeneity …. Within this framework we show that non-separable utility, variable demand elasticity and endogenous firm heterogeneity cause … that the extent of the errors depends on the degree of firm heterogeneity. In particular, the inefficiency of the market …

This paper studies how firm heterogeneity in terms of productivity affects the balance between agglomeration and … endogenous markups. It shows that firm heterogeneity matters. However, whether it shifts the balance from agglomeration to … `evenness'. Accordingly, the role of firm heterogeneity in selection models of agglomeration can not be fully understood without …

country's overall cultural heterogeneity occurs between groups, this does not imply that cultural differences between groups …