Department of Economics
National University of Singapore
AS2 Level 4, 1 Arts Link
Information about this author at RePEc
NBER Working Papers and Publications
|May 2014||The Wealth Distribution in Bewley Models with Investment Risk|
with Jess Benhabib, Alberto Bisin: w20157
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.
|June 2008||Age, Luck, and Inheritance|
with Jess Benhabib: w14128
We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and social welfare.