Economics, Econometrics and Finance
4 years ago

New model predicts private risk premium impact on wealth distribution

RePEc: Research Papers in Economics
Private risk premium and aggregate uncertainty in the model of uninsurable investment risk
Francisco Covas, Shigeru Fujita

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Taxing the Top 1% at 90%: A Game-Changer for Social Equality

Infrastructure Impact
Retirement Planning
Gender Inequality
Business, Management and Accounting
4 years ago

Study reveals individuals have more income security than previously thought

Retirement Planning
Credit Expansion
Income Inequality
1 view
Business, Management and Accounting
4 years ago

High risk jobs fuel wealth inequality, new study reveals

Retirement Planning
Credit Expansion
Macroeconomic Analysis
1 view

The article explores how entrepreneurs deal with risks in their investments. The model used matches real-world data on wealth and income distribution. The research shows that the private risk premium is around 2-3%, and the risk-free rate is low. However, these values don't change much during economic ups and downs, indicating the model may not respond well to big changes in the economy.