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Jangyoun Lee
''Rentier premium and wealth inequality''
( 2021, Vol. 41 No.3 )
Why do some people stay wealthy while others remain poor? Based on the empirical evidence of persistently heterogeneous returns on wealth across households, this study introduces the 'rentier premium' into the standard heterogeneous agents dynamic stochastic general equilibrium model. This tractable model shows that the rentier premium has acted as a key driver in rising wealth inequality in the United States since the 1980s.
Keywords: wealth inequality, rentier premium, heterogeneous agents DSGE
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
E1 - General Aggregative Models: General
Manuscript Received : May 13 2021 Manuscript Accepted : Sep 17 2021

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