Two wealth effects typically arise in any contest: i) wealth decreases the marginal cost of effort, but also ii … depending on whether the first, second, or both wealth effects play a role: namely, a privilege contest, an ability contest, and … a rent-seeking contest. Our theoretical analysis reveals that the effects of wealth and wealth inequality are strongly …

within the wealth distribution, the median voter is determined endogenously. In a numerical experiment, the model is … initialized to the 1992 U.S. joint distribution of income and wealth as well as several statistics of the federal income tax … progressivity have high labor productivity and/or very high wealth. A movement towards greater progressivity increases aggregate …