The Wealth Distribution in Bewley Models with Investment Risk

We study the wealth distribution in Bewley economies with idiosyncratic capital income risk (entrepreneurial risk). We find, under rather general conditions, a unique ergodic distribution of wealth which displays fat tails (a Pareto distribution in the right tail).

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Year of publication:	2014
Authors:	Zhu, Shenghao ; Bisin, Alberto ; Benhabib, Jess
Institutions:	Society for Economic Dynamics - SED

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Extent:	application/pdf
Series:	2014 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2014 SED Meeting Papers Number 617
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011085141