utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is …We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a … not a life-cycle model. A competitive firm produces a single good from labor and capital; the rate of return to capital …

-tax, low-regulation capitalism will generate extreme capital accumulation, and that persistent wealth equalization requires … from being dominated by elite-owned fortunes to consist mainly of popular wealth, and that capital shares in national … large shocks to capital coming from wars or progressive taxation. Instead, institutions that promote household wealth …

What are the consequences of the preference for wealth for the accumulation of capital and for the dynamics of wealth … progressive wealth taxation prevents wealth from being held by people with high saving rates. This permanently reduces the capital … inequality? Assuming that wealth per se is a luxury good, inequality tends to rise whenever the interest rate is larger than the …

easing entrepreneurial investments for credit-constrained individuals whose investment possibilities depend on their income …

This paper examines long-term trends in aggregate wealth and inheritance and in their distributions, focusing on … developed economies. A key stylized fact is that wealth is less equally distributed than income. Financial assets predominate … among the wealthy, while owner-occupied housing is crucial for middle groups, so higher stock prices raise wealth inequality …

We study the impact of heterogeneous saving behavior on the distributional effects of public investment. A capital tax … is levied to finance productive public capital in an economy with two types of households: high income households who … capital tax rate and that low rates even constitute a Pareto-improvement. There is thus no clear-cut trade-off between …

Recent books by Thomas Piketty (Piketty, 2014) and Anthony Atkinson (Atkinson, 2015) have brought the annual wealth tax … back on the policy agenda. Both authors suggest using the annual wealth tax to supplement the redistributional effects of …, the wealth tax is often not delivering the expected effects - a large share of the tax burden falls on people with low …

We study a small open economy displaying Pareto-distributed wealth resulting from random death. The government runs a … with ordinary differential equations for the mean of age and of individual and government wealth. We also study … distributional dynamics analytically. Starting from any distribution of age and wealth, the aggregate distribution converges, both on …

-run wealth distribution, high interest rates imply exploding wealth dynamics. When matching the NLSY 79 evolution of the wealth …

of Piketty's Second Fundamental Law of Capitalism does not hold. In line with Piketty's theory a smaller long-run growth …We scrutinize Thomas Piketty's (2014) theory concerning the relationship between an economy's long-run growth rate, its … capital-income ratio, and its factor income distribution put forth in his recent book Capital in the Twenty-First Century. We …