Wealth and income inequality in the long run

Arbeitspapier

This paper analyses the joint long-run evolution of wealth and income inequality. We show that top wealth and income shares were cointegrated over the past century in France and the US. We rationalise this finding using a two-agent version of the Solow growth model. In this framework, the co-movement of top wealth and income shares is determined by the relative saving rate at the top, i.e. the ratio of the saving rate of rich individuals to the aggregate saving rate. The cointegration finding suggests that relative saving rates at the top are fairly stable over time, thus explaining the tight co-movement between top wealth and income shares over the past century

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Working Paper Series ; No. 2022/02

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Macroeconomics: Consumption; Saving; Wealth ; Aggregate Factor Income Distribution ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913- ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: 1913-
• Thema: Income inequality ; wealth inequality ; top shares ; saving rates ; cointegration ; error correction

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Lieberknecht, Philipp ; Vermeulen, Philip
• Ereignis: Veröffentlichung
• (wer): Auckland University of Technology (AUT), Faculty of Business, Economics and Law
• (wo): Auckland
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/262204
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ