There is cross-country and time-series evidence that volatility is associated with slower growth. However, matching this evidence has proven to be a challenge for growth models without market failures, as they tend to predict the opposite for values of risk aversion greater than unity. This note...

This paper examines the effect of wealth concentration on firms' market power when firm entry is driven by entrepreneurs facing uninsurable idiosyncratic risks. Under greater wealth concentration, households in the lower end of the wealth distribution are more risk averse and less willing (or...