Carroll, Christopher; Slacalek, Jiri; Tokuoka, Kiichi; … - Department of Economics, Lerner College of Business and … - 2014
We present a macroeconomic model calibrated to match both microeconomic and macroeconomic evidence on household income dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we show that its predictions (unlike those of...