In this paper we analyse the effects of financialisation on income distribution, before and after the Great Financial Crisis and the Great Recession. The focus is on functional income distribution and thus on the relationship between financialisation and the wage share or the gross profit share....

A good estimate for the state-price density has important applications both in practice, to derivatives valuation, and in economic theory, to our understanding of risk preferences. I estimate the state-price density nonparametrically using transaction-level data on S&P500 call and put options...