Macroeconomics is evolving from the study of aggregate dynamics to the study of the
dynamics of the entire equilibrium distribution of allocations across individual economic …

This chapter reviews various interactions between the distribution of income across
individuals and factors of production on the one hand, and aggregate savings, investment …

The distribution of wealth in most countries for which there is reliable data is strikingly
uneven. There is also recent work suggesting that the wealth distribution has undergone …

The benefits of new technologies accrue not only to high‐skilled labor but also to owners of
capital in the form of higher capital incomes. This increases inequality. To make this …

Using two unifying models and an empirical exercise, this paper presents and extends the
main theories linking income distribution and growth, as well as the relevant empirical …

A striking feature of US data on income and consumption is that inequality increases with
age. This paper asks if individual-specific earnings risk can provide a coherent explanation …

Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

We develop a model with partial insurance against idiosyncratic wage shocks to quantify risk
sharing. Closed-form solutions are obtained for equilibrium allocations and for moments of …

This article asks whether household heterogeneity and market incompleteness have
quantitatively important implications for the welfare effects of tax changes. We compare a …

When human capital accumulation generates pecuniary externalities across professions,
and capital markets are imperfect, persistent inequality in utility and consumption is …