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CANCELLED HIRANO Tomohiro (Royal Holloway University of London) “Wealth Concentration and Asset Bubbles”
March 16, 11:15 am - 12:30 pm
Time: 12:15pm – 13:30 pm
Date: 16th of March 2020
Place: Room 3001
HIRANO Tomohiro (Royal Holloway University of London) ” Wealth Concentration and Asset Bubbles”
Abstract : We develop a simple macroeconomic model with heterogeneous agents that generates the stationary distribution of wealth with Pareto tail endogenously. We show that Top-end wealth concentration can be a signal of the formation of asset bubbles. Moreover, we show that asset bubbles have a unique impact on the Pareto tail. These results have novel insights into early warning signals of asset bubbles. Finally, we demonstrate that financial market deregulation or technological innovation contributes to greater wealth concentration toward the Top and macroeconomic instability through the formation of asset bubbles.
Joint work : Jose Scheinkman (Columbia University), and Makoto Nirei (Tokyo)