@article{KNS2018,<br />
    author = "Marcin Kacperczyk and Jaromir Nosal and Luminita Stevens",<br />
    title = "{Investor sophistication and capital income inequality}",<br />
    journal = {Journal of Monetary Economics},<br />
    volume = {107},<br />
    pages = {18-31},<br />
    year = {2019},<br />
    abstract = "{Capital income inequality is large and growing fast, accounting for a significant portion of total income inequality. We study its 
	growth in a general equilibrium portfolio choice model with endogenous information acquisition and heterogeneity across household sophistication 
	and asset riskiness. The model implies capital income inequality that grows with aggregate information technology. Investors differentially adjust 
	both the size and the composition of their portfolios, as unsophisticated investors retrench from trading risky securities and shift their 
	portfolios to safer assets. Technological progress also reduces aggregate returns and increases the volume of transactions, features that are 
	consistent with recent U.S. data.}"
}