We test whether relative risk aversion varies with wealth using the Panel Study of Income Dynamics data in the U.S. Our … responds to wealth fluctuations, the income channel and the habit channel. For across households, there are heterogeneous … responses, and to provide strong evidence of relative risk aversion varying with wealth, after correcting two misspecification …

risk premium. We show that the dynamics of external additive habits with wealth inequality are complex when a background … risk is present. It is ambiguous whether wealth inequality will increase or decrease the equity premium even when the … income uncertainty is low. This result extends literature by suggesting that wealth inequality has a small role in explaining …

novel survey data from the top of the wealth distribution, which have been added to the 2019 German Socio-economic Panel … Study. The data include private wealth balance sheets, in particular the value of own private business assets, and a … share of their wealth in their own businesses when they are more willing to take risks. These associations are stronger …

novel survey data from the top of the wealth distribution, which have been added to the 2019 German Socio-economic Panel … Study. The data include private wealth balance sheets, in particular the value of own private business assets, and a … share of their wealth in their own businesses when they are more willing to take risks. These associations are stronger …