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A dynamic economy with markets of equities and bonds is considered. The rational expectations equilibrium is defined in an asset pricing model and a condition under which the Modigliani-Miller theorem holds is shown. In an aggregate model the existence of a rational expectations equilibrium is...
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capital income and earnings taxation on expected wealth concentration over higher quantiles as well as on conditional upper … distributions. While useful in studies of ergodic wealth accumulation processes and the persistence of inequality, our results can … tail dispersion of wealth holdings, qualifying previous results that solely rely on the determination of Pareto exponents. …
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optimization problem that aims at preserving for each wealth instrument the level of inequality measured by the Gini coefficient … wealth discrepancies across the households. Finally, based on the German HFCS, we compare the findings with another approach … may reallocate households' wealth beyond the observed discrepancies, thereby leading to Gini coefficients that exceed the …
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