This paper analyzes aggregate wealth based on separable risk aversion and intertemporal substitution. In an infinite-period OG model with survival uncertainty, economic growth, and permanent and temporary income shocks, our closed-form solution permits us to derive rich behavioral conclusions...

Several models of economic behavior currently compete for an explanation of individual wealth accumulation and savings patterns. In this paper we focus in particular upon the role of income uncertainty, and the role played by a retirement period, during which time expected earnings are zero. We...

It is well known that an uncertain income stream will induce individuals to save if they are forward looking. In this paper we investigate the consequences of such saving upon the distribution of wealth among households. The inquiry is motivated by the fact that both the dispersion of the U.S....

As an effective investment strategy, investors often invest jointly in a company by forming a syndicate. The unique feature of this paper is that it endogenizes the formation of an investment syndicate. We provide a theory on the endogenous formation of networks in investment syndication and...

This paper is a contribution to the ongoing debate on the benefits and drawbacks of bank revenue diversification. Revenue diversification may benefit banks if diversified activities are inherently less risky and possess high returns, while it may hurt banks if diversified activities are more...