This paper quantifies general equilibrium effects of financial innovations that increase access to equity markets. I study an overlapping-generations model with idiosyncratic and aggregate risk in which households face participation frictions and rebalancing frictions on saving flows. The model is disciplined by lifecycle moments for portfolio holdings and wealth, as well as aggregate asset-pricing moments and recent empirical evidence on stock demand elasticity and limited risk transfer. Counterfactual adoption of an age-based asset allocation rule decreases the equity premium, stabilizes equity return volatility, improves risk sharing, and lowers financial wealth inequality. These outcomes are similar to an economy without any participation costs or rebalancing frictions. Following the transition to an age-based asset allocation rule, rich young households lose in welfare by up to 3% consumption equivalents, while the rest of young households gain almost 6%; and retirees benefit by 0–3%.

Using a quarter century of U.S. state and federal tax and transfer data, we estimate how shifts in the market income distribution pass through to the distribution of post-tax, post-transfer disposable income. A system of equations yields the marginal effect of moving market income share from any quintile to any other on the entire disposable distribution. We address reverse causality by instrumenting with state-level exposure to international trade, commodity-price, and national industry-demand shocks. The system's attenuation of market income shifts is hump-shaped in quintile rank, peaking sharply at the middle quintile, consistent with the median voter theorem and what Stigler labeled as Director's Law. This works largely through large, systematic spillovers onto quintiles that neither gain nor lose, also favoring the middle, which we term the greedy median voter. The shape of this pass-through shifts with economic conditions. Where market inequality has run higher, the middle-favoring peak flattens and the bottom quintile is left more exposed. As average real disposable income per capita rises the protection of the bottom likewise recedes, even as the middle peak holds firm. We complement these results with an insurance-coalition analysis.

This paper studies the phenomenon of the marriage house in China and its effects on demographics and homeownership. We first show empirical evidence: single males with a marriage house (a house where the newlywed can move in) have 70% higher odds of getting married than counterparts who do not have one. The timing of home purchase exhibits a clear cut-off around marriage, with the probability of purchasing peaking 0–2 years before marriage and slumping immediately after. In the cross section, county house prices and average age at marriage are highly correlated in both level and growth rate. We then quantify the marriage-related incentives for homeownership using a lifecycle consumption-savings model with housing demand and ownership-dependent marriage shocks. Without the marriage-market premium, young households delay home purchases by about five years. Eliminating the convenience value of a marriage house reduces overall ownership by 35% for families with a male child between ages 15 and 45, and the marriage-house friction accounts for 40% of the rise in marriage age between 1995 and 2010. Our results suggest that policies directed at either housing affordability or demographics can have significant consequences for both marriage and housing markets.

The mandarin growth model emphasizes how politicians' career incentives have shaped China's economic growth (Song and Xiong, 2026). We identify how these incentives affect local development in Chinese cities. Our empirical design exploits appointments of provincial superiors who share city leaders' birthplaces as exogenous relaxations of career incentives, which sever the link between growth and promotion. We document that these city leaders reallocate land toward residential use and away from industrial and commercial uses, lower residential land prices, and curb local-government borrowing, with no detectable change in total land supply. The results reveal how career incentives redirect local development.