Age, luck, and inheritance / Jess Benhabib, Shenghao Zhu
- Benhabib, Jess, 1948-
- Cambridge, MA : National Bureau of Economic Research, 
- Copyright Date:
- Physical Description:
- 63 pages : illustrations ; 22 cm.
- Additional Creators:
- Zhu, Shenghao, 1977- and National Bureau of Economic Research
- We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and social welfare.
- "June 2008."
- Bibliography Note:
- Includes bibliographical references (pages 40-44).
- Other Forms:
- Also available in PDF from the NBER World Wide Web site (www.nber.org).
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