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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 populated by the best-informed investors. Wealth inequality … dynamics. Using data on US households' beliefs, the model can explain the recent dynamics in wealth inequality …
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I study the dynamics of the wealth distribution and asset prices in a general equilibrium model. Agents face heterogeneous portfolio constraints that limit the shares of risky investments relative to wealth. The setup is motivated by empirical evidence that many households do not participate in...
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wealth might therefore exacerbate the consequences of labor market inequality. …
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wealth inequality, all else equal. Stock market booms primarily boost the wealth of households at the top of the distribution …
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