Aladangady, Aditya; Gagnon, Etienne; Johannsen, Benjamin K. - 2021
We explore the long-run relationship between income risk, inequality, and the macroeconomy in an overlapping … they require for bearing risk, leading to higher measured income and wealth inequality, a lower risk-free real interest … rate, and higher risk premiums. These findings suggest that the factors behind the observed rise in inequality over the …