The distribution of wealth in the blanchard-yaari model

Jess Benhabib, Alberto Bisin, Shenghao Zhu

    Research output: Contribution to journalArticle

    Abstract

    We study the dynamics of the distribution of wealth in an economy with infinitely lived agents, intergenerational transmission of wealth, and redistributive fiscal policy. We show that wealth accumulation with idiosyncratic investment risk and uncertain lifetimes can generate a double Pareto wealth distribution.

    Original languageEnglish (US)
    Pages (from-to)466-481
    Number of pages16
    JournalMacroeconomic Dynamics
    Volume20
    Issue number2
    DOIs
    StatePublished - Apr 10 2014

    Keywords

    • Fat Tails
    • Rate of Return Risk
    • Wealth Distribution

    ASJC Scopus subject areas

    • Economics and Econometrics

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