Events

Economics Seminar

Authors:

• Shenghao Zhu
  National University of Singapore

• Jess Benhabib
  New Yok University

• Alberto Bisin
  New Yok University and NBER

We study the wealth distribution in Bewley economies with idiosyncratic capital income risk. We show analytically that under rather general conditions on the stochastic structure of the economy, a unique ergodic distribution of wealth displays a fat tail; more precisely, a Pareto distribution in the right tail.