opportunities affect inequality and aggregate income dynamics. The economy is populated by households who can invest in alternative … concerning income inequality and social mobility. Finally, we test the impact of redistributive fiscal policies, showing that … raising long-run aggregate income and decreasing income inequality. Moreover, policy timing is important: fiscal policies that …

continued to grow. The resulting polarization in earnings has been accompanied by an increase in wealth inequality. This paper … increases wealth inequality. We then analyze the efficacy of alternative fiscal measures in terms of their ability to increase … economic activity, reduce wealth inequality, and improve welfare. A reduction in the tax rate on capital achieves all of these …