The Economics Professor at the University of Pennsylvania Jesús Fernández-Villaverde presented his paper Financial Frictions and the Wealth Distributions at the 7th NCID Research Workshop at the Fundación Ramón Areces in Madrid.

“In a world with financial frictions, wealth distribution matters. Why? Because those who operate the capital and those who own the capital are different persons and the financial friction prevents the adequate transfer from those who have to those who can operate it more efficiently”, Fernández-Villaverde said. 

This paper concentrates in studying heterogeneity within agents rather than between the agents in an economy.