Expectation heterogeneity and wealth inequality

Sarıkaya, Furkan (2019) Expectation heterogeneity and wealth inequality. [Thesis]

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This study examines the effect of expectation heterogeneity on wealth inequality assuming that people with higher income are more optimistic about future returns of their savings, through a modified version of Krusell - Smith heterogeneous agent’s model with uninsured idiosyncratic risk and aggregate uncertainty. Our main finding is that wealth distribution is jointly determined by general equilibrium effect, individual policy functions and income mobility under heterogeneous expectations assumption. As a result, an inverse U-shape relation between wealth inequality and level of expectation heterogeneity is observed
Item Type: Thesis
Uncontrolled Keywords: Wealth inequality. -- Expectation heterogeneity. -- Optimism. -- Pessimism. -- Incomplete markets. -- Heterojen beklentiler. -- Optimizm. -- Pesimizm. -- Servet eşitsizliği. -- Eksik Piyasalar.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: IC-Cataloging
Date Deposited: 17 Sep 2019 15:15
Last Modified: 26 Apr 2022 10:30
URI: https://research.sabanciuniv.edu/id/eprint/39196

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