We present the results of an experiment where a random subset of the participants in the Bundesbank's household panel receive personalized response scales, centered at each participant's point forecast. Personalized response scales offer two advantages over the standard scale which is centered...

The risk-neutral density is a fundamental concept in pricing financial derivatives, risk management, and assessing financial markets' perceptions over significant political or economic events. In this paper, we propose a new nonparametric method for estimating the risk-neutral density using...

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...