Wealth Inequality and Intergenerational Links

Pubblico
Creator Series Issue number
  • 314
Date Created
  • 2002-11
Abstract
  • Previous work has had difficulty generating household saving behavior that makes the distribution of wealth much more concentrated than that of labor earnings, and that makes the richest households hold onto large amounts of wealth, even during very old age. I construct a quantitative, general equilibrium, overlapping-generations model in which parents and children are linked by accidental and voluntary bequests and by earnings ability. I show that voluntary bequests can explain the emergence of large estates, while accidental bequests alone cannot, and that adding earnings persistence within families increases wealth concentration even more. I also show that the introduction of a bequest motive generates lifetime savings profiles more consistent with the data.

Related information Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
Resource type DOI
License

Le relazioni

In Collection:
Ultima modifica

Contenuto scaricabile

Scarica il pdf

Zipped Files

Download a zip file that contains all the files in this work.

Elementi