Bewley 14, Theorem l] proved an infinite dimensional equilibrium existence theorem which is a significant extension of the classical finite dimensional theorem of Arrow and Debreu [ 11. The assumptions on technology and preferences are natural and applicable in a wide variety of cases. The proof is based on a limit argument that makes direct use of the existence of equilibrium in the finite dim...

I n preparing my comment on Truman Bewley’s work, I had the privilege of reading a draft of Professor Bewley’s forthcoming book, Why Wages Don’t Fall During a Recession. This book describes an extensive field study, in which Professor Bewley interviewed hundreds of business managers and labor leaders, seeking to understand the puzzling phenomenon of wage rigidity. The paper presented here is an...

Individuals’ tendency to stick to the current state of affairs, known as the status quo bias, has been widely documented over the past 30 years. Yet, the determinants of this phenomenon remain elusive. Following the intuition suggested by Bewley (1986), we conduct a systematic experiment exploring the role played by different types of uncertainty on the emergence of the bias. We find no bias wh...

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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.

The standard life-cycle incomplete-markets model, where households face idiosyncratic income shocks and trade a non-contingent asset, is a workhorse of quantitative macroeconomics. In this paper, we assess the degree of consumption insurance implicit in a plausibly calibrated version of the model, and we compare it to the data. On both actual and simulated data, we apply a technique recently de...

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. © 2015 Elsevier Inc. All rights reserved. JEL classification: E13; E21; E24

Susan Bewley professor of complex obstetrics , Brenda Kelly consultant obstetrician and clinical lead for the Oxford Rose Clinic , Katrina Darke general practitioner and clinical lead for the Bristol Community Rose Clinic , Katrina Erskine consultant obstetrician and gynaecologist and associate medical director , Clare Gerada general practitioner , Patricia Lohr medical director , Paquita de Zu...

ALEXANDER SPOTT,* JON PETERS, MICHAEL L. DAVENPORT, ERIC J. STANTON, CHARLES D. MERRITT, WILLIAM W. BEWLEY, IGOR VURGAFTMAN, CHUL SOO KIM, JERRY R. MEYER, JEREMY KIRCH, LUKE J. MAWST, DAN BOTEZ, AND JOHN E. BOWERS Department of Electrical and Computer Engineering, University of California, Santa Barbara, California 93106, USA Code 5613, Naval Research Laboratory, Washington, DC 20375, USA Depar...