Showing 1 - 10 of 53
Changes in credit market architecture are an important but unobservable structural influence on economic activity. For Australian data, we model non-price credit supply conditions within equilibrium correction models of consumption, house prices, mortgage credit and housing equity withdrawal....
Persistent link: https://www.econbiz.de/10009371480
This paper derives optimal inheritance tax formulas that (a) capture the key equity-efficiency trade-off, (b) are expressed in terms of estimable sucient statistics, (c) are robust to the underlying structure of preferences. We consider dynamic stochastic models with general and heterogeneous...
Persistent link: https://www.econbiz.de/10011083680
This article offers an overview of the empirical and theoretical research on the long run evolution of wealth and … inheritance. Wealth-income ratios, inherited wealth, and wealth inequalities were high in the 18th-19th centuries up untilWorldWar …, the long run magnitude and concentration of wealth and inheritance are an increasing function of r — g, where r is the net …
Persistent link: https://www.econbiz.de/10011083954
The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2007 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial...
Persistent link: https://www.econbiz.de/10008784720
How do aggregate wealth-to-income ratios evolve in the long run and why? We address this question using 1970 … able to extend our analysis as far back as 1700. We find in every country a gradual rise of wealth-income ratios in recent … growth, in line with the β=s/g Harrod-Domar-Solow formula. That is, for a given net saving rate s= 10%, the long run wealth …
Persistent link: https://www.econbiz.de/10011083398
wealth should do better than those with less wealth. We investigate this hypothesis using a unique datset from Norway …. Consistent with liquidity constraints being present, we find a strong positive relationship between founder prior wealth and … start-up size. The relationship between prior wealth and start-up performance, as measured by profitability on assets …
Persistent link: https://www.econbiz.de/10005791690
A democratic society in which the distribution of wealth is unequal elects political parties which tend to represent …
Persistent link: https://www.econbiz.de/10005792370
cycle, of several dimensions of economic inequality, including wages, labor earnings, income, consumption, and wealth. After …
Persistent link: https://www.econbiz.de/10008509469
1950, and back up to about 15% by 2010. A simple theoretical model of wealth accumulation, growth and inheritance can fully … wealth accumulation well above 100%. Our findings illustrate the fact that when the growth rate g is small, and when the rate … of return to private wealth r is permanently and substantially larger than the growth rate (say, r=4%-5% vs. g=1 …
Persistent link: https://www.econbiz.de/10008468507
Feedback mechanisms are the key to sequencing when it comes to regional integration. Feedback mechanisms can mean that today’s policy or institution alters the political economy landscape in a way that makes it politically optimal for future governments to take further steps towards...
Persistent link: https://www.econbiz.de/10008468652