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Risk aversion heterogeneity and the investment-uncertainty relationship

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Figure

Figure 1: The time line.
Figure 2: Panels (a), (b) and (c) display where the investment-uncertainty relation is positive, for Λ, Λ  and Λ  , respectively.
Figure 3: Histogram of the stationary wealth distributions.
Figure 4: Panels (a), (b) and (c) display where the investment-uncertainty relation is positive under portfolio constraint q t,j ≤ 4, for Λ, Λ  and Λ  , respectively.
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