Heterogeneity, Selection, and Wealth Dynamics
研究市场选择假说，即在竞争市场中正确信念的代理人是否被选中，分析完全市场与不完全市场下该假说成立或失败的条件，对资产价格和宏观经济建模有启示。
The market selection hypothesis states that, among expected utility maximizers, competitive markets select for agents with correct beliefs. In some economies this hypothesis holds, whereas in others it fails. It holds in complete-markets economies with a common discount factor and bounded aggregate consumption. It can fail when markets are incomplete, when consumption grows too quickly, or when discount factors and beliefs are correlated. These insights have implications for the general equilibrium modeling of asset prices and macroeconomic phenomena.