Unpacking Rising Inequality: The Roles of Markups, Taxes, and Asset Prices
Author(s) Stéphane Auray, Aurélien Eyquem, Bertrand Garbinti, Jonathan Goupille-LebretWe study the dynamics of income and wealth inequality using a heterogeneous-agent model that combines endogenous portfolio choice, a granular representation of the tax-and-transfer system, and a reduced-form mechanism linking markups to top incomes through entrepre...
