Wealth and Inheritance in the Long Run

Thomas Piketty and Gabriel Zucman

No 10072, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This article offers an overview of the empirical and theoretical research on the long run evolution of wealth and inheritance. Wealth-income ratios, inherited wealth, and wealth inequalities were high in the 18th-19th centuries up untilWorldWar 1, then sharply dropped during the 20th century following World War shocks, and have been rising again in the late 20th and early 21st centuries. We discuss the models that can account for these facts. We show that over a wide range of models, the long run magnitude and concentration of wealth and inheritance are an increasing function of r ? g, where r is the net-of-tax rate of return on wealth and g is the economy's growth rate. This suggests that current trends toward rising wealth-income ratios and wealth inequality might continue during the 21st century, both because of the slowdown of population and productivity growth, and because of rising international competition to attract capital.

Keywords: Wealth; Income; Distribution (search for similar items in EconPapers)
JEL-codes: H00 (search for similar items in EconPapers)
Date: 2014-07
New Economics Papers: this item is included in nep-gro and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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Working Paper: Wealth and Inheritance in the Long Run (2015)
Working Paper: Wealth and Inheritance in the Long Run (2015)
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