Asset prices and the distribution of wealth

Authors
Sandroni, A
Citation
A. Sandroni, Asset prices and the distribution of wealth, ECON LETT, 64(2), 1999, pp. 203-207
Citations number
4
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
64
Issue
2
Year of publication
1999
Pages
203 - 207
Database
ISI
SICI code
0165-1765(199908)64:2<203:APATDO>2.0.ZU;2-V
Abstract
This paper relates fluctuations in asset prices to stochastic arrival of ag ents with different discount factors. I show that even arbitrarily small an d rare shocks could lead to an arbitrarily high average equity premium whil e average interest rates remain arbitrarily close to the average rate of pr oductivity growth. (C) 1999 Elsevier Science S.A. All rights reserved.