Fearing the worst: the importance of uncertainty for inequality
(2015)
Journal Article
Blackburn, K., & Chivers, D. (2015). Fearing the worst: the importance of uncertainty for inequality. Economic Theory, 60(2), 345-370. https://doi.org/10.1007/s00199-015-0876-9
We present an overlapping generations model in which aspirational agents face uncertainty about the returns to human capital investment. This uncertainty implies the prospect that aspirations will not be fulfilled, the probability of which is greater... Read More about Fearing the worst: the importance of uncertainty for inequality.