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- W2160221323 abstract "The last 30 years saw substantial increases in wealth inequality and stock market participation, smaller increases in consumption inequality and the fraction of indebted households, a decline in interest rates and the expected equity premium, as well as a prolonged stock market boom. In an incomplete markets, overlapping generations model I jointly explain these trends by the observed rise in wage inequality, decrease in participation costs, and loosening of borrowing constraints. After accounting for these changes, I show that the stock market played a major role in increasing wealth inequality. Crucially, these phenomena must be considered jointly; studying one independently leads to counterfactual predictions about others." @default.
- W2160221323 created "2016-06-24" @default.
- W2160221323 creator A5003411742 @default.
- W2160221323 date "2013-03-01" @default.
- W2160221323 modified "2023-10-05" @default.
- W2160221323 title "Inequality, stock market participation, and the equity premium" @default.
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- W2160221323 doi "https://doi.org/10.1016/j.jfineco.2012.10.008" @default.
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