Age, Luck, and Inheritance /
Benhabib, Jess.
Age, Luck, and Inheritance / Jess Benhabib, Shenghao Zhu. - Cambridge, Mass. National Bureau of Economic Research 2008. - 1 online resource: illustrations (black and white); - NBER working paper series no. w14128 . - Working Paper Series (National Bureau of Economic Research) no. w14128. .
June 2008.
We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and social welfare.
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Mode of access: World Wide Web.
Age, Luck, and Inheritance / Jess Benhabib, Shenghao Zhu. - Cambridge, Mass. National Bureau of Economic Research 2008. - 1 online resource: illustrations (black and white); - NBER working paper series no. w14128 . - Working Paper Series (National Bureau of Economic Research) no. w14128. .
June 2008.
We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and social welfare.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.