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The Wealth Distribution in Bewley Economies with Investment Risk

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  • Jess Benhabib
  • Alberto Bisin
  • Shenghao Zhu

Abstract

We study the wealth distribution in Bewley economies with idiosyncratic capital income risk (investment risk). We fi nd, under rather general conditions, a unique ergodic distribution of wealth which displays fat tails (a Pareto distribution in the right tail).

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 20157.

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Date of creation: May 2014
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Handle: RePEc:nbr:nberwo:20157

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