Marco Cagetti

TL;DR: In this article, a parsimonious model of occupational choice that allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing constraints is presented, which fits very well a number of empirical observations, including the observed wealth distribution for entrepreneurs and workers.

TL;DR: In this paper, the authors construct and simulate a life cycle model of wealth accumulation and estimate the parameters of the utility function (the rate of time preference and the coefficient of risk aversion) by matching the simulated median wealth profiles with those observed in the Panel Study of Income Dynamics and in the Survey of Consumer Finances.

TL;DR: In this paper, the authors construct a model that matches wealth inequality very well, for both entrepreneurs and non-entrepreneurs, and find that more restrictive borrowing constraints generate less wealth concentration, but also reduce average firm size, aggregate capital, and the fraction of entrepreneurs.

TL;DR: In this paper, the authors study how decision-makers' concerns about robustness affect prices and quantities in a stochastic growth model and show that the dynamic evolution of the risk-return trade-off is dominated by movements in the growth state probabilities.

TL;DR: This paper studied the effect of the estate tax on the saving and investment decisions of small businesses and found that the tax has little effect on saving decisions but does distort the decisions of larger firms, thereby reducing aggregate output and savings.