Periodic Reporting for period 3 - LiquidHouseCycle (A Unified Framework of Business Cycles and Household Portfolios: Income Risks, Asset Liquidity, and Inequality)

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...