International Robust Disagreement
5 Pages Posted: 14 Jan 2012
Date Written: January 13, 2012
Abstract
We characterize the equilibrium of a two-country, two-good economy in which agents have opposite preference bias toward one of the two consumption goods and fear model misspecification. We document that disagreement about endowments' growth prospects is a persistent endogenous outcome of this class of economies.
Keywords: Robustness, Disagreement, International
JEL Classification: F41
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Term Structure of Interest Rates in a Pure Exchange Economy with Heterogeneous Investors
By Jiang Wang
-
Heterogeneous Expectations and Bond Markets
By Hongjun Yan and Wei Xiong
-
Heterogeneous Expectations and Bond Markets
By Hongjun Yan and Wei Xiong
-
The Price Impact and Survival of Irrational Traders
By Leonid Kogan, Stephen A. Ross, ...
-
The Price Impact and Survival of Irrational Traders
By Leonid Kogan, Stephen A. Ross, ...
-
Consensus Consumer and Intertemporal Asset Pricing with Heterogeneous Beliefs
By Elyes Jouini and Clotilde Napp
-
Equilibrium Portfolio Strategies in the Presence of Sentiment Risk and Excess Volatility
By Bernard Dumas, Alexander Kurshev, ...
-
Equilibrium Portfolio Strategies in the Presence of Sentiment Risk and Excess Volatility
By Bernard Dumas, Alexander Kurshev, ...