This paper uses recently available data on the top of the wealth distribution to study the relationship between asset prices and wealth inequality. I document three stylized facts: (1) the share of wealth invested in equity increases sharply in the right tail of the wealth distribution, (2) when stock market returns are high, wealth inequality increases and (3) higher wealth inequality predicts...

Wealth distribution has always been an important issue in our economic and social life, since it affects the harmony and stabilization of the society. Under the background of widely used financial tools to raise leverage these years, we studied the leverage effect on wealth distribution of a population in a controllable laboratory market in which we have conducted several human experiments, and...

Suppose that a policyholder faces $n$ risks X1, ..., Xn which are insured under the policy limit with the total limit of l. Usually, the policyholder is asked to protect each Xi with an arbitrary limit of li such that ∑ni=1li=l. If the risks are independent and identically distributed with log-concave cumulative distribution function, using the notions of majorization and stochastic orderings, ...

Empirical evidence shows that entrepreneurs hold a large fraction of wealth, have higher saving rates than workers, and face substantial uninsurable entrepreneurial and investment risks. This paper constructs a heterogeneous-agent general equilibrium model with uninsurable entrepreneurial risk and capital-market imperfections to explore the implications of uninsurable entrepreneurial risk for w...

 In this paper an artificial society is being assumed as a multi agents system. A sugarscape model consisting of a cellular landscape of resources is used to form an interaction among the agents of the population. In the model, agents find the resources to survive. They are supposed to move and search and because of this movement, an evolutionary social behavior will develope. From model analys...

We analyse optimal saving of risk-averse households when labour income stochastically jumps between two states. The generalized Keynes-Ramsey rule includes a precautionary savings term. A phase diagram analysis illustrates consumption and wealth dynamics within and between states. There is an endogenous lower and upper limit for wealth. We derive the Fokker-Planck equations for the densities of...

When perfect information is present in a model, the initial distribution of wealth will have no effect on whether or not equilibrium is Pareto efficient. However, as Stiglitz (1987) emphasized, this no longer holds when imperfect information is introduced: the initial distribution of wealth can affect whether or not an economy is Pareto efficient. One reason, for this effect is that the distrib...

Invariably across a cross-section of countries and time periods, wealth distributions are skewed to the right displaying thick upper tails, that is, large and slowly declining top wealth shares. In this survey we categorize the theoretical studies on the distribution of wealth in terms of the underlying economic mechanisms generating skewness and thick tails. Further, we show how these mechanis...

We consider an asset-pricing model with wealth dynamics in a market populated by heterogeneous agents. By assuming that all agents belonging to the same group agree to share their wealth whenever an agent joins the group or leaves it , we develop an adaptive model which characterizes the evolution of wealth distribution when agents switch between different trading strategies. Two groups with he...