Working Paper: NBER ID: w12550
Authors: Marco Cagetti; Mariacristina De Nardi
Abstract: In the United States wealth is highly concentrated and very unequally distributed: the richest 1% hold one third of the total wealth in the economy. Understanding the determinants of wealth inequality is a challenge for many economic models. We summarize some key facts about the wealth distribution and what economic models have been able to explain so far.
Keywords: No keywords provided
JEL Codes: D3; D58; D64; E2; E20; E23; H0; H31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Income Inequality (D31) | Wealth Inequality (D31) |
| Bequests (D64) | Wealth Inequality (D31) |
| Entrepreneurial Saving Behavior (L26) | Wealth Dispersion (D31) |
| Earnings Risk (J31) | Saving Behavior of Rich Households (D14) |
| Saving Behavior of Rich Households (D14) | Wealth Concentration (D31) |