Successful entrepreneurs and executives often hold much of their wealth in a highly appreciated single stock and … classic betting strategies and economic theory. My calculations suggest that for many investors a full and immediate … liquidation of their appreciated single stock might be optimal from the perspective of long-run wealth growth and preservation. In …

This paper explores how volatility in stock markets affects wealth inequality. Theoretically, volatility increases … wealth inequality because it increases the heterogeneity of log returns more at the top of the wealth distribution than at … is gradually increased. The result is that volatility leads to both increased heterogeneity of log returns and wealth …

This paper studies the effects of heterogeneity in planning propensity on wealth inequality and asset prices. I … uncertainty is future income, inattentive consumers will still accumulate more wealth. In contrast, in a version of the model … wealth, in line with empirical evidence. Moreover, asset prices are much more volatile than in a representative agent model …

This paper studies the effects of heterogeneity in planning propensity on wealth inequality and asset prices. I … uncertainty is future income, inattentive consumers will still accumulate more wealth. In contrast, in a version of the model … wealth, in line with empirical evidence. Moreover, asset prices are much more volatile than in a representative agent model …