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dc.contributor.authorSkott, Peteren_US
dc.description.abstractRising inequality affects the composition of asset demands as well as aggregate demand. The poor have few financial assets and their portfolio is skewed towards fixed-income assets. The rich, by contrast, hold a large proportion of their wealth in stocks. Thus, an increase in inequality tends to raise the demand for stocks. This generates capital gains, and these gains can fuel a bubble, as desired portfolios shift further towards stocks.en_US
dc.publisherUniv. of Massachusetts, Dep. of Economics Amherst, Mass.en_US
dc.relation.ispartofseriesWorking Paper, University of Massachusetts, Department of Economics 2011-20en_US
dc.subject.keywordearnings inequalityen_US
dc.subject.keywordportfolio compositionen_US
dc.subject.keywordfinancial instabilityen_US
dc.titleIncreasing inequality and financial instabilityen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Papers, Department of Economics, University of Massachusetts

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