The Relation between Return and Income

S-Tier
Journal: Quarterly Journal of Economics
Year: 1987
Volume: 102
Issue: 1
Pages: 77-95

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper presents evidence that the corporate stock owned by high-income investors appreciates substantially faster than the stock owned by investors with lower incomes. The evidence indicates that the differences are large and that they have persisted for a long period of time. Some potential explanations of this phenomenon are discussed, and it seems that the best explanation is that the rich have a higher tendency to invest in risky stock.

Technical Details

RePEc Handle
repec:oup:qjecon:v:102:y:1987:i:1:p:77-95.
Journal Field
General
Author Count
1
Added to Database
2026-01-29