Before revision: Identification in heterogeneous agent economies can be obtained by utilizing restrictions which are consistent with alternative mechanisms. Survey data that are informative about the proportion of agents whose behavior is distorted due to financial frictions provides additional information. The latter can shrink the set of admissible models and preference parameter values. This paper provides identification analysis, simulation evidence and an application using Spanish data where the borrowing constrained are identified by combining information from different surveys.
After revision: Identification in heterogeneous agent economies are identifiable without taking a stance on the underlying source of market incompleteness and heterogeneity. While the proposed restrictions deliver bounds for these parameters, distributional information such as the extensive margin of financially constrained households can sharpen identification. The paper provides estimates using Spanish data where the borrowing constrained are identified by combining information from different surveys.