Title: Ambiguity Aversion and Inequality in the Macroeconomy

Speaker: Luo Yulei, Professor of Economics, School of Business and Economics, University of Hong Kong; obtained a doctoral degree from Princeton University (studying under top economists such as Professor Christopher A. Sims, the 2011 Nobel laureate in economics). His main research directions are macroeconomics, information economics, monetary theory and policy. In recent years, Professor Luo has published more than 20 high-level papers in top international journals of economics and management such as American Economic Journal: Macroeconomics, Journal of Economic Theory, Management Science, Economic Journal, Journal of International Economics, Journal of European Economic Association, Review of Economic Dynamics and Journal of Economic Dynamics and Control.

Abstract: We develop a Bewley-Huggett-Merton type model to examine how ambiguity aversion influences income, wealth, and consumption inequality. Our findings show that a stronger preference for ambiguity aversion reduces both wealth and consumption dispersions while generating welfare gains in general equilibrium. Furthermore, we demonstrate that the impacts of an increase in ambiguity aversion on inequalities differ significantly from those associated with an increase in risk aversion.

Date & time: 17 June 2025, 14:00 - 15:30

Venue: B321, Zhixin Building, Central Campus, Shandong University