Risk Premiums, Nominal Rigidities, and Limited Asset Market Participation

Recent developments in the asset pricing literature show that a combination of technology and distributive shocks can rationalize observed risk premia when firm ownership is concentrated hands few households. We find are unnecessary nominal price rigidity taken into account. Our results driven by income redistribution associated to procyclical variations profit margins firms concentrated, prices sticky, hit economy. In this regard, standard DSGE models allow for concentration have potential replicate both business cycle facts moments financial variables.