The Wealth Distribution in Bewley Models with Investment Risk

@inproceedings{Benhabib2014TheWD,
  title={The Wealth Distribution in Bewley Models with Investment Risk},
  author={Jess Benhabib},
  year={2014}
}
We study the wealth distribution in Bewley economies with idiosyncratic capital income risk (entrepreneurial risk). We find, under rather general conditions, a unique ergodic distribution of wealth which displays fat tails (a Pareto distribution in the right tail). ∗Thanks to Ben Moll for kindly providing us with very useful detailed comments. 
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