Compared to the distributions of earnings, the distributions of wealth in the US and many other countries are strikingly concentrated on the top and skewed to the right. To explain the income and wealth inequality, we provide a tractable heterogeneous‐agent model with incomplete markets in...

We study economies where firms acquire capital in primary markets then retrade it in secondary markets after information on idiosyncratic productivity arrives. Our secondary markets incorporate bilateral trade with search, bargaining and liquidity frictions. We distinguish between full and...

We study economies where firms acquire capital in primary markets, then, after information on idiosyncratic productivity arrives, retrade it in secondary markets. Our secondary markets incorporate bilateral trade with search, bargaining and liquidity frictions. We distinguish between full or...