Rentier premium and wealth inequality

Jangyoun Lee ()
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Jangyoun Lee: Bank of Korea

Economics Bulletin, 2021, vol. 41, issue 3, 1994-2002

Abstract: Why do some people stay wealthy while others remain poor? Based on the empirical evidence of persistently heterogeneous returns on wealth across households, this study introduces the 'rentier premium' into the standard heterogeneous agents dynamic stochastic general equilibrium model. This tractable model shows that the rentier premium has acted as a key driver in rising wealth inequality in the United States since the 1980s.

Keywords: wealth inequality; rentier premium; heterogeneous agents DSGE (search for similar items in EconPapers)
JEL-codes: E1 E2 (search for similar items in EconPapers)
Date: 2021-09-17
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Citations: View citations in EconPapers (2)

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