Cvitanic, JaksaMalamud, Semyon2011-12-162011-12-162011-12-16201110.1016/j.jfineco.2010.11.001https://infoscience.epfl.ch/handle/20.500.14299/74313WOS:000287550100011We study survival, price impact, and portfolio impact in heterogeneous economies. We show that, under the equilibrium risk-neutral measure, long-run price impact is in fact equivalent to survival, whereas long-run portfolio impact is equivalent to survival under an agent-specific, wealth-forward measure. These results allow us to show that price impact and portfolio impact are two independent concepts: a nonsurviving agent with no long-run price impact can have a significant long-run impact on other agents' optimal portfolios. (C) 2010 Elsevier B.V. All rights reserved.SurvivalPrice impactEquilibriumHeterogeneous agentsOptimal portfoliosHeterogeneous BeliefsRisk-AversionTerm StructureReturnsModelConsumptionEquilibriaSelectionMarketsEconomytext::journal::journal article::research article