Skewed Wealth Distributions: Theory and Empirics
Journal of Economic Literature
no. 4, December 2018
Invariably across a cross-section of countries and time periods, wealth distributions are skewed to the right displaying thick upper tails, that is, large
and slowly declining top wealth shares. In this survey we categorize the theoretical studies on the distribution of wealth in terms of the underlying
economic mechanisms generating skewness and thick tails. Further, we show how these mechanisms can be micro-founded by the consumption-saving decisions of rational agents in specific economic and demographic environments. Finally we map the large empirical work on the wealth
distribution to its theoretical underpinnings.
Benhabib, Jess, and Alberto Bisin.
"Skewed Wealth Distributions: Theory and Empirics."
Journal of Economic Literature,
Specific Distributions; Specific Statistics
Household Saving; Personal Finance
Personal Income, Wealth, and Their Distributions
Macroeconomics: Consumption; Saving; Wealth
Wage Level and Structure; Wage Differentials