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008	191218t20192019onc     ob   f000 0 eng d
040	|aCaOODSP|beng|erda|cCaOODSP
041	|aeng|bfre
043	|an-cn---
086	1 |aFB3-5/2019-48E-PDF
100	1 |aDjeutem, Edouard.
245	10|aModel uncertainty and wealth distribution / |cby Edouard Djeutem and Shaofeng Xu.
264	1|a[Ottawa] : |bBank of Canada, |c2019.
264	4|c©2019
300	|a1 online resource (iii, 33 pages)
336	|atext|btxt|2rdacontent
337	|acomputer|bc|2rdamedia
338	|aonline resource|bcr|2rdacarrier
490	1 |aBank of Canada staff working paper, |x1701-9397 ; |v2019-48
500	|a"December 2019."
504	|aIncludes bibliographical references (pages 18-19).
520	3 |a"This paper studies the implications of model uncertainty for wealth distribution in a tractable general equilibrium model with a borrowing constraint and robustness à la Hansen and Sargent (2008). Households confront model uncertainty about the process driving the return of the risky asset, and they choose robust policies. We find that in the presence of a borrowing constraint, model distortion varies non-monotonically with wealth. Robustness generates two forces that amplify wealth inequality. On the one hand, it increases the speed at which the wealth of unlucky households hits the borrowing constraint. On the other hand, it leads richer households to invest a disproportionately larger share of wealth in the higher yielding asset. Our study also shows that model uncertainty results in an aggregate welfare loss unevenly distributed across households"--Abstract.
546	|aIncludes abstract in French.
650	0|aDistribution (Economic theory)
650	0|aUncertainty|xMathematical models.
650	6|aDistribution (Économie politique)
650	6|aIncertitude|xModèles mathématiques.
710	2 |aBank of Canada.
830	#0|aStaff working paper (Bank of Canada)|x1701-9397 ; |v2019-48.|w(CaOODSP)9.806221
856	40|qPDF|s1.48 MB|uhttps://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-48-eng.pdf