The Wealth Distribution in Bewley Models with Investment Risk

Jess Benhabib, Alberto Bisin and Shenghao Zhu ()

No 20157, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the wealth distribution in Bewley economies with idiosyncratic capital income risk. We show analytically that under rather general conditions on the stochastic structure of the economy, a unique ergodic distribution of wealth displays a fat tail; more precisely, a Pareto distribution in the right tail.

JEL-codes: E13 E21 (search for similar items in EconPapers)
Date: 2014-05
New Economics Papers: this item is included in nep-mac
Note: EFG
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Citations: View citations in EconPapers (6)

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Working Paper: The Wealth Distribution in Bewley Models with Investment Risk (2014)
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