The paper demonstrates that identification in heterogeneous agent economies can be robust to alternative assumptions regarding the underlying structure using identifying restrictions that are consistent with a variety of mechanisms. These restrictions generate moment inequalities and therefore set identification , which can lead to wide confidence sets for the structural parameters. The paper shows that employing aggregated survey data that are informative about the extensive margin of adjustment i.e. the proportion of agents whose behavior is distorted over time due to financial frictions  can provide additional information that can tighten the corresponding bounds. The paper provides identification analysis both in an extended partial equilibrium analytical example and in a general equilibrium setting. I apply this approach to the Spanish economy, where the proportion of constrained consumers is identified by combining information from different surveys . The results suggest that the extensive margin is empirically informative .
The paper studies identification in heterogeneous agent economies utilizing restrictions that are consistent with alternative mechanisms. These restrictions generate moment inequalities and therefore set identification . Employing aggregated survey data that are informative about the extensive margin of adjustment i.e. the proportion of agents whose behavior is distorted over time due to financial frictions , can provide additional information that can tighten the corresponding bounds. The paper provides identification analysis , simulation evidence and an application using Spanish data where the borrowing constrained are identified by combining information from different surveys .
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can be robust to alternative assumptions regarding the underlying structure using identifying
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, which can lead to wide confidence sets for the structural parameters. The paper shows that employing
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both in an extended partial equilibrium analytical example and in a general equilibrium setting. I apply this approach to the Spanish economy, where the proportion of constrained consumers is
, simulation evidence and an application using Spanish data where the borrowing constrained are
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. The results suggest that the extensive margin is empirically informative