How long would it take to establish shareholder socialism?

Emilio Carnevali, Giacomo Corneo and Pierluigi Vellucci

No 2026/19, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: This paper develops a formal framework for the establishment and expansion of a Sovereign Wealth Fund (SWF) from the perspective of Shareholder Socialism. After reviewing the heterogeneous origins and financing arrangements of existing SWFs, we present a dynamic model that characterizes feasible pathways through which advanced economies can build a large-scale public equity fund without relying on natural resource revenues or foreign-exchange reserves. To evaluate the time required to reach target fund-to-GDP ratios under plausible scenarios, we use Monte Carlo simulations that account for return uncertainty. The results indicate that a sizeable public wealth fund can be accumulated within twenty to thirty years.

Keywords: Shareholder Socialism; Sovereign Wealth Fund; Public Ownership; Monte Carlo Estimation (search for similar items in EconPapers)
JEL-codes: G11 H0 H5 P2 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:343041

DOI: 10.17169/refubium-52931

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