Skewed Wealth Distributions: Theory and Empirics

Jess Benhabib and Alberto Bisin

No 21924, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: B16 E13 E21 E24 E25 (search for similar items in EconPapers)
Date: 2016-01
New Economics Papers: this item is included in nep-mac and nep-pbe
Note: EFG
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Citations: View citations in EconPapers (49)

Published as Jess Benhabib & Alberto Bisin, 2018. "Skewed Wealth Distributions: Theory and Empirics," Journal of Economic Literature, vol 56(4), pages 1261-1291.

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Journal Article: Skewed Wealth Distributions: Theory and Empirics (2018)
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