演講者簡介 : Professor Michael Sockin received his PhD in Economics from Princeton University in 2015. He is currently an assistant professor of finance at McCombs School of Business. His research focuses on the intersection between finance, public finance, and macroeconomics, with an emphasis on the real effects of financial market frictions.
演講摘要 : We propose a dynamic theory of financial market power in which wealthy investors hold concentrated stakes in illiquid assets. Wealthy investors distort their saving decisions and remain under-diversified to capture inframarginal rents on their trades. Imperfect risk sharing today exacerbates wealth inequality in the future, which further worsens the distortions to risk sharing from market power. As a result, fortunes are constantly created and destroyed. We provide conditions under which wealth concentration leads to inflated asset values, unequal returns to wealth, and low liquidity. We also discuss implications for welfare, measurement, and the feedback between real and financial market concentration.
