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Creator: Sorge, Marco M. Publication: Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
URN: urn:nbn:de:101:1-2412151658575.516633498657
Path:
To Bequeath, or Not to Bequeath? On Labour Income Risk and Top Wealth Concentration

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The B.E. journal of theoretical economics

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Title:
The B.E. journal of theoretical economics
Publication:
Berlin Boston, Mass.: De Gruyter
Note:
Gesehen am 04.12.20
C!URL-Ä(06-02-12);C:auf der Degruyter-Seite werden bei den früheren Jg. (1.2001ff) die Artikel der darin aufgegangenen Zeitschriften aufgeführt, daher wurde der ev obiger Veröffentlichung nicht auf 1.2001 zurückdatiert;355!URL-Ä(04-12-20)
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Online-Ressource
ISSN:
1935-1704
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2268339-2 ZDB
VÖBB-Katalog:
35340968
Keywords:
Zeitschrift
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Collection:
Sozialwissenschaften
Wirtschaft
Technik
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Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen
Title:
The B.E. journal of theoretical economics
Publication:
Berlin Boston, Mass.: De Gruyter
Note:
Gesehen am 04.12.20
C!URL-Ä(06-02-12);C:auf der Degruyter-Seite werden bei den früheren Jg. (1.2001ff) die Artikel der darin aufgegangenen Zeitschriften aufgeführt, daher wurde der ev obiger Veröffentlichung nicht auf 1.2001 zurückdatiert;355!URL-Ä(04-12-20)
Scope:
Online-Ressource
ISSN:
1935-1704
ZDB-ID:
2268339-2 ZDB
VÖBB-Katalog:
35340968
Keywords:
Zeitschrift
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Copyright:
Rights reserved
Accessibility:
Eingeschränkter Zugang mit Nutzungsbeschränkungen

To Bequeath, or Not to Bequeath? On Labour Income Risk and Top Wealth Concentration

Article

Author:
Sorge, Marco M.
Title:
To Bequeath, or Not to Bequeath? On Labour Income Risk and Top Wealth Concentration
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
Language:
English
Information:
Abstract: Recent theoretical advances suggest that capital income risk, rather than earnings uncertainty, is the key determinant of fat-tailed behavior of stationary wealth distributions. I provide novel insights into this issue by studying an incomplete market model with general time and state separable preferences, where parental altruism and unobservable idiosyncratic shocks engender non-linear bequest rules. I analytically pin down conditions on the preference structure and other model’s primitives under which optimal bequest behavior hinders intergenerational wealth transmission for any degree of capital income risk, causing the dynamics of wealth to converge to a unique (stationary) distribution with thin tails. These results imply, in particular, that (i) the stochastic properties of labour income risk (as shaped by, e.g. fiscal policies) may play a role in defining the structure of the upper tail of the limiting distribution of wealth, and that (ii) matching empirically documented fat tails with choice theoretic frameworks of wealth dynamics requires joint restrictions on preferences and calibrated earnings processes to be met.
Scope:
Online-Ressource
Note:
Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
wealth distributions ; incomplete markets ; earnings uncertainty ; capital income risk ; labour income taxation ; D31 ; H20
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
URN:
urn:nbn:de:101:1-2412151658575.516633498657
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
Copyright:
CC BY
Accessibility:
Free Access
Author:
Sorge, Marco M.
Title:
To Bequeath, or Not to Bequeath? On Labour Income Risk and Top Wealth Concentration
Publication:
Berlin Boston, Mass.: ˜Deœ Gruyter, 2024
Language:
English
Information:
Abstract: Recent theoretical advances suggest that capital income risk, rather than earnings uncertainty, is the key determinant of fat-tailed behavior of stationary wealth distributions. I provide novel insights into this issue by studying an incomplete market model with general time and state separable preferences, where parental altruism and unobservable idiosyncratic shocks engender non-linear bequest rules. I analytically pin down conditions on the preference structure and other model’s primitives under which optimal bequest behavior hinders intergenerational wealth transmission for any degree of capital income risk, causing the dynamics of wealth to converge to a unique (stationary) distribution with thin tails. These results imply, in particular, that (i) the stochastic properties of labour income risk (as shaped by, e.g. fiscal policies) may play a role in defining the structure of the upper tail of the limiting distribution of wealth, and that (ii) matching empirically documented fat tails with choice theoretic frameworks of wealth dynamics requires joint restrictions on preferences and calibrated earnings processes to be met.
Scope:
Online-Ressource
Note:
Open Access
Archivierung/Langzeitarchivierung gewährleistet
Keywords:
wealth distributions ; incomplete markets ; earnings uncertainty ; capital income risk ; labour income taxation ; D31 ; H20
Classification:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
URN:
urn:nbn:de:101:1-2412151658575.516633498657
Collection:
Sozialwissenschaften
Wirtschaft
Technik
Sonstiges
Copyright:
CC BY
Accessibility:
Free Access
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