Benhabib, Jess; Bisin, Alberto; Zhu, Shenghao - National Bureau of Economic Research (NBER) - 2014
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...