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The Intergenerational Propagation of Wealth Inequality

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  • Alan G. Isaac

Abstract

This paper highlights the crucial role of demographic assumptions in models of the intergenerational transmission of wealth inequality. Specifically, we show that Alan Blinder's surprising predictions that bequest and mating practices can sustain but cannot cause wealth inequality are extremely fragile. We show that these predictions depend on a common and apparently minor demographic assumption: fixed sex ratios in family composition. We implement the Blinder model as an agent-based simulation and show that without this demographic assumption such familial institutions are causative for wealth inequality, even in the long run.

Suggested Citation

  • Alan G. Isaac, 2014. "The Intergenerational Propagation of Wealth Inequality," Metroeconomica, Wiley Blackwell, vol. 65(4), pages 571-584, November.
    • Handle: RePEc:bla:metroe:v:65:y:2014:i:4:p:571-584
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    File URL: https://hdl.handle.net/10.1111/meca.12057
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    References listed on IDEAS

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    1. Alan G. Isaac, 2021. "Wealth Inequality and the Financial Accumulation Process," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(3), pages 430-448, June.
    2. Elisa Palagi & Mauro Napoletano & Andrea Roventini & Jean-Luc Gaffard, 2017. "Inequality, Redistributive Policies and Multiplier Dynamics in an Agent-based Model with Credit Rationing," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 367-387, November.
    3. Ellis Scharfenaker & Gregor Semieniuk, 2017. "A Statistical Equilibrium Approach to the Distribution of Profit Rates," Metroeconomica, Wiley Blackwell, vol. 68(3), pages 465-499, July.
    4. Anwar Shaikh & Amr Ragab, 2023. "Some universal patterns in income distribution: An econophysics approach," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 248-264, February.
    5. repec:spo:wpmain:info:hdl:2441/3tvjqhncd09rqbcrqaen7hlmlg is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/6u2usmuctn9r3rgj50gbomltva is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/6u2usmuctn9r3rgj50gbomltva is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/3tvjqhncd09rqbcrqaen7hlmlg is not listed on IDEAS

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