degree of heterogeneity in household preferences or beliefs is sufficient to match empirical measures of wealth inequality in … the United States. The heterogeneity-augmented model’s predictions are consistent with microeconomic evidence that … macroeconomic models (even ones including some heterogeneity). The high MPC arises because many consumers hold little wealth despite …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of … changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …

generates wealth heterogeneity that matches the empirical data, the improved model can provide a sensible analysis of economic …

dynamics. When the model is modified in a way that permits it to match empirical measures of wealth inequality in the U.S., we …

used to estimate the discount rates of households. We show that there is substantial heterogeneity in discounting behaviour …

used to estimate the discount rates of households. We show that there is substantial heterogeneity in discounting behaviour …

used to estimate the discount rates of households. We show that there is substantial heterogeneity in discounting behaviour …

could give a misleading picture of households' preparedness for retirement as it cannot capture the vast heterogeneity in …