Wealth distribution and asset prices

Dan Cao and Jinhui Bai
Additional contact information
Dan Cao: Georgetown University

No 1150, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: We propose a model that explains the relationship between wealth distribution and asset prices over the business cycles. The model features an economy with a continuum of agents and with both idiosyncratic and aggregate shock a la Krusell and Smith (1998). However, we allow agents to trade in a long-lived asset in addition to in-contingent bonds. We develop a numerical method to calculate wealth-recursive equilibrium in the economy and apply the method to examine quantitatively the relationship between wealth distribution and asset prices in the U.S. economy.

Date: 2014
New Economics Papers: this item is included in nep-dge and nep-pbe
References: Add references at CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2014/paper_1150.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:1150

Access Statistics for this paper

More papers in 2014 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().