The wealth distribution in Bewley economies with capital income risk

Jess Benhabib, Alberto Bisin and Shenghao Zhu ()

Journal of Economic Theory, 2015, vol. 159, issue PA, 489-515

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.

Keywords: Wealth distribution; Bewley economies; Pareto distribution; Fat tails; Capital income risk (search for similar items in EconPapers)
JEL-codes: E13 E21 E24 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:159:y:2015:i:pa:p:489-515

DOI: 10.1016/j.jet.2015.07.013

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