A two factor model of income distribution dynamics

TL;DR: In this paper, the authors consider the welfare costs of inflation and the welfare gains from financial intermediation in a heterogeneous-agent economy where money is held as a store of value (as in Bewley, 1980).

TL;DR: Li et al. as discussed by the authors studied the functional form of Chinese income distribution and found that the distributional form has changed a lot from its appearance in the early stage of China's reform and turns out to be consistent with that of some complete market economies.

TL;DR: The authors characterizes the optimal long-run progressive tax schedule in an environment where individual labor supply choices are subject to adjustment frictions Agents incur a fixed cost of adjusting their hours of work in response to changes in their idiosyncratic wages or their tax rates This fixed cost can be thought of as the cost of searching for a new job in an economy where hours are constrained within the firm.

TL;DR: The authors developed a statistical concept of economic equilibrium as the stationary distribution of a random walk on the exchange equilibrium set (the contract set) of a pure exchange economy induced by unhedgeable shocks that perturb the economy from the equilibrium set and subsequent disequilibrium trading that returns the economy to a new equilibrium.

Abstract: The classic text for understanding complex statistical probability An Introduction to Probability Theory and Its Applications offers comprehensive explanations to complex statistical problems. Delving deep into densities and distributions while relating critical formulas, processes and approaches, this rigorous text provides a solid grounding in probability with practice problems throughout. Heavy on application without sacrificing theory, the discussion takes the time to explain difficult topics and how to use them. This new second edition includes new material related to the substitution of probabilistic arguments for combinatorial artifices as well as new sections on branching processes, Markov chains, and the DeMoivreLaplace theorem.

TL;DR: The authors showed that the large shocks that capital owners experienced during the Great Depression and World War II have had a permanent effect on top capital incomes and argued that steep progressive income and estate taxation may have prevented large fortunes from fully recovering from these shocks.

TL;DR: In this paper, the authors analyse a class of distribution functions that appear in a wide range of empirical data-particularly data describing sociological, biological and economic phenomena-and look for an explanation of the observed close similarities among the five classes of distributions listed above.

TL;DR: In this paper, a calibrated version of the stochastic growth model with partially uninsurable idiosyncratic risk and movements in aggregate productivity is used to analyze how movements in the distribution of income and wealth affect the macroeconomy.