Do equity investors care about pay dispersion and income inequality? We address this question by examining equity … concerned about high within-firm pay dispersion, and investors' prosocial preferences with respect to income inequality are a …

conditional volatility of income process. An important prediction of the model is that income volatility predicts future jumps …We develop a general equilibrium model in which income and dividends are smooth, but asset prices are subject to large …, while the variation in the level of income does not. We find that indeed in the data large moves in returns are predicted by …

conditional volatility of income process. An important prediction of the model is that income volatility predicts future jumps …We develop a general equilibrium model in which income and dividends are smooth, but asset prices are subject to large …, while the variation in the level of income does not. We find that indeed in the data large moves in returns are predicted by …