A micro perspective on r > g

Roberto Iacono () and Elisa Palagi

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: By exploiting large-scale administrative data on estimated gross and net personal wealth in Norway from 2010 to 2018, this paper establishes the first microlevel analysis of the difference between the real return on wealth and the real growth rate of total pretax income across the entire net wealth distribution. We show that for the top 40% of the distribution, aggregate R − G underestimates its micro counterpart r − g, while the opposite happens for the bottom 60%, indicating that micro r−g qualifies as a more precise measure to analyze the dynamics of income and wealth inequality thoroughly.

Keywords: wealth inequality; tax records; Norway (search for similar items in EconPapers)
JEL-codes: D30 D31 D33 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2022-03
New Economics Papers: this item is included in nep-eec
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://eprints.lse.ac.uk/114442/ Open access version. (application/pdf)

Related works:
Journal Article: A micro perspective on r > g (2023)
Working Paper: A Micro Perspective on r > g (2021)
Working Paper: A Micro Perspective on r > g (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:114442

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