This paper provides a technical description of GEM-PIA, a recursive-dynamic computable General Equilibrium Model for Poverty Impact Analysis in individual countries. The model combines the optimizing behavior of CGE models with the asset portfolio behavior of macromodels, thereby addressing the...

Evidence on the portfolio holdings and transaction patterns of households suggests that the burden of inflation is not evenly distributed. We build a monetary growth model consistent with key features of cross- sectional household data and use this framework to study the distributional impact of...

This paper proposes a super-/sub-hedging strategy for a derivative on two underlying assets using Young's inequality.The strategy dose not depend on any model for the dependency between the underlying assets, but on their marginal distributions. The bounds enforced by the hedging portfolio is...

I examine how differences in the ability to identify profitable investment opportunities contribute to wealth inequality. I analyze a model of financial markets with investors heterogeneously informed about future returns. The unconditional wealth share distribution features a thick right-tail...

We provide a simple rational bubble model demonstrating that a concentration of income is necessary and sufficient for the existence of equilibria with risky speculative bubbles. Income concentration among top earners leads to excess savings and depressed interest rates, which facilitate the...