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We develop an analytical framework designed to solve and analyze heterogeneous-agent models that generate fat-tailed wealth distributions. We exploit the asymptotic linearity of policy functions and the analytical characterization of the Pareto exponent to augment the conventional solution...
Persistent link: https://www.econbiz.de/10011914427
In this paper we propose a stochastic model in which wealth accumulation depends on the role that agents play in the society: capitalists or workers. A random mechanism of class selection shapes the social structure of the economy based on wealth distribution dynamics. As a result, the society...
Persistent link: https://www.econbiz.de/10009493150
Persistent link: https://www.econbiz.de/10014265753
Our computational economic analysis investigates the relationship between inequality and the financial accumulation … role as socioeconomic source of inequality, while institutional configurations play a significant role in framing and …
Persistent link: https://www.econbiz.de/10013029158
We present a simple stochastic model in which heterogeneous agents accumulate wealth belonging to the capitalist or the working class, with profits generated by a stochastic multiplicative process and wages by an additive one. Class selection is based on a random process depending on wealth...
Persistent link: https://www.econbiz.de/10009147678
degree of heterogeneity in household preferences or beliefs is sufficient to match empirical measures of wealth inequality in …
Persistent link: https://www.econbiz.de/10011995508
Abstract This paper investigates the sources of inequality in household gross and net wealth across eight euro … a remarkable effect on wealth inequality that is stronger than the one of income differences. In Austria, Germany and … Cyprus the contribution of real and financial assets inherited or received as gifts to gross and net wealth inequality …
Persistent link: https://www.econbiz.de/10012099951
Approach to Decomposition This paper analyses how microeconomic factors drive inequality in household wealth across nine … have a considerable effect on wealth inequality that is on average stronger than that of income differences and other … or inter vivos transfers attains more than 30% to explained wealth inequality. The distribution of household …
Persistent link: https://www.econbiz.de/10012099984
We study beliefs about wealth inequality and preferences for wealth redistribution. For this, we conduct a large … overestimate their position reduce their aversion to inequality after learning their position, while those who underestimate their …
Persistent link: https://www.econbiz.de/10014574300
The inheritance tax is often seen as an effective tool to reduce wealth inequality, to raise public budgets if needed … tool for fighting wealth inequality without having distorting effects for the economy. For this purpose, the distributional …
Persistent link: https://www.econbiz.de/10012287840