ERC Consolidator Grant · 2016
Households face large idiosyncratic income risks and use their wealth to self insure. In doing so, they make portfolio choices we can summarize grosso modo as choices between liquid (safe and nominal) and illiquid (risky and real) assets. These choices have the potential to create strong aggregate repercussions as investments in real assets create an immediate demand for goods, while liquid nominal savings only when someone else uses the funds to invest or consume. As a result, portfolio choices are key for economic dynamics and important for the propagation of monetary and fiscal policy. Moreover, household portfolio positions and the liquidity of assets itself become an important…
From the public funding record at EU CORDIS. Describes the funded project, not the reviews below.