Best, James; Dogra, Keshav - 2023 - Revised January 2024
on long-run wealth inequality. Incorporating capital management into a standard RamseyCass-Koopmans model generates … substantial long-run inequality: the majority of the population works and holds no capital, while a small minority holds a large … amount of capital and manages it full-time. Counterintuitively, financial innovations or policies that reduce return …