On the distribution of lifetime wealth accumulation. (English) Zbl 07927837
Summary: I derive a stationary distribution of lifetime wealth accumulation factor in a model featuring inheritance of productivity, wealth, and health condition, where lifetime wealth is the sum of financial wealth and human wealth. Assuming ex-ante heterogeneity in the death rate, I show that the distribution of the lifetime wealth accumulation factor is constituted by a weighted sum of shape-differing Pareto distributions. It is shown that raising the wealth tax reduces inequality of lifetime wealth not only within a death-rate type but also across all the death-rate types.
MSC:
| 91Bxx | Mathematical economics |
Keywords:
inherited wealth; wealth inequality; wealth accumulation factor; wealth tax; Pareto tail; lifetime wealth; lifetime inequalityReferences:
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