We develop a general equilibrium model of earnings, income and wealth heterogeneity in continuous time. We extend … interest rates provide a mechanism to link earnings, income and wealth distributions. We use this connection to demonstrate … that an increase in unemployment benefits leads to a rise in steady state wealth inequality measured by the Gini …

-contingent assets under a borrowing limit. Search outcomes affect earnings and wealth accumulation. In turn, wealth and earnings affect … search decisions by changing the optimal trade-off between the wage and the matching probability. The calibrated model yields … sizable inequality in wages and wealth among homogeneous workers. Wealth significantly reduces a worker's transition rates …

equilibrium framework with heterogeneous agents and a fiscal structure resembling the actual US tax system. The wealth and income … tax rate decreases inequality in both wealth and income but also leads to a contraction of the aggregate economy. This is …

equilibrium framework with heterogeneous agents and a fiscal structure resembling the actual U.S. tax system. The wealth and … marginal tax rate decreases inequality in both wealth and income but also leads to a contraction of the aggregate economy. This …

We study a small open economy displaying Pareto-distributed wealth resulting from random death. The government runs a … with ordinary differential equations for the mean of age and of individual and government wealth. We also study … distributional dynamics analytically. Starting from any distribution of age and wealth, the aggregate distribution converges, both on …

; (ii) a decline in labor productivity; (iii) an increase in the top 1% wealth share, and (iv) an increase in the capital …' total savings, and wealth concentrates in the capitalists' hands. A higher profit share and wealth share both put pressure … inevitable: taxation can be used to implement any wealth distribution targeted by policymakers; while worker …

productivity; (ii) a fall in the labor share, (iii) an increase in the capital income ratio, and (iv) an increase in the wealth …, differential savings delivers a direct relationship between the capitalist share of wealth and the capital-income ratio independent …: tax policy can be used to implement any wealth distribution, similarly to Zamparelli (2016); while worker …

shown to be increasing in wealth inequality. The dynamic interaction between inequality and social security leads to growing …