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 language | English (US) |
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Pages (from-to) | 466-481 |
Number of pages | 16 |
Journal | Macroeconomic Dynamics |
Volume | 20 |
Issue number | 2 |
DOIs | |
State | Published - Apr 10 2014 |
Keywords
- Fat Tails
- Rate of Return Risk
- Wealth Distribution
ASJC Scopus subject areas
- Economics and Econometrics