Panel A: Implementation with portfolio constraints. The market price and trader’s private valuation for the local asset and for the family portfolio as a function of the local endowment \(\hat{y}_{m,t}=y_{m,t}/y_t\), all expressed in annual terms. The aggregate endowment growth and volatility are kept fixed at their unconditional means.

Panel B: Implementation with taxes/subsidies. The tax/subsidy for the local asset \(\tau_{m,t}\) and for the family portfolio \(\tau_{m,t}^F\), both as a function of the local endowment \(\hat{y}_{m,t}=y_{m,t}/y_t\). The aggregate endowment growth and volatility are kept fixed at their unconditional means.