Rate Of Wealth Accumulation Research Articles

The Rise in Economic Inequality in India in Recent Years

India's economy is among the fastest expanding in the world, yet it also ranks among the most unequal. Throughout the past thirty years, inequality has been steadily increasing in the country. A significant portion of the wealth generated by crony capitalism and inheritance has been monopolized by the wealthiest. Their rate of wealth accumulation is significantly exceeded that of the impoverished, who struggle to make ends meet and obtain adequate healthcare and education. In the paper we try to scrutinize the trends in income and wealth inequality in India and also examine the impact of Covid-19 pandemic on economic inequality in the nation. Some policy suggestions are made as India navigates the road to recovery to alleviate the gaps posed by the extraordinary difficulties presented by COVID-19 and promote a more resilient and equitable economic environment in post-pandemic India.

The Cumulative Effects of Colorism: Race, Wealth, and Skin Tone

Abstract Researchers have long documented a persistent Black–White gap in wealth. These studies, however, often treat race as a discrete category, eluding its socially constructed nature. As a result, these studies assume that the “effect of race” is consistent across all individuals racialized as Black. Studies that make this assumption potentially obscure heterogeneity in the size of the Black–White wealth gap. Research on skin color stratification suggests that it is possible that the Black–White wealth gap varies by the extent to which a racial subgroup is deemed to fit the broader racial umbrella. In turn, I adopt a more complex operationalization of race that is based on both racial and skin tone appraisals. Drawing on data from the National Longitudinal Survey of Youth 1997, I find that the Black–White wealth gap does vary by the Black skin tone subgroup. Generally, the Black–White gap in assets is smallest when focusing on lighter-skin Black people and largest when focusing on darker-skin Black people. These differences are not only the result of initial disadvantage but also cumulative disadvantage in the rate of wealth accumulation. Lastly, the findings suggest that the Black–White wealth gaps grow at a faster rate than the skin tone wealth gaps. I found that differences were robust to adjustments for parental socioeconomic status, childhood background, and interviewer characteristics. I conclude by discussing the theoretical implications for our understanding of the mechanisms undergirding Black–White disparities in wealth attainment.

Wealth accumulation in rotation forestry - Failure of the net present value optimization?

The rate of wealth accumulation is discussed, and an expression for a momentary rate of capital return is presented. An expected value of the wealth accumulation rate is produced. The return rates depend on any yield function. Three different yield functions are applied, two of them published in the literature, and a third one parametrized using a comprehensive growth model. A common economic objective function, as well as a third known objective function, are applied and compared with the clarified wealth accumulation rate. While direct optimization of wealth appreciation rate always yields best results, procedures gained by maximizing the internal rate of return are only slightly inferior. With external discounting interest rate, the maximization of net present value yields arbitrary results, the financial consequences being at worst devastating.

A Model of Economic Mobility and the Distribution of Wealth

This paper introduces new techniques to obtain a closed-form rank-by-rank characterization of the equilibrium distribution of wealth in a model in which finitely lived households face uninsurable idiosyncratic investment risk. A central result is that the extent of inequality is determined entirely by two factors. The first factor, household exposure to idiosyncratic investment risk, increases inequality. The second factor, cross-sectional mean reversion of household wealth, decreases inequality. We show that economic mobility is decreasing in inequality and increasing in mean reversion, a result that is consistent with recent empirical observations about the geographic variation in mobility that exists both domestically and internationally. Our approach allows us to examine the implications of increased market completeness in the form of a risk-sharing subgroup of households. We show that a risk-sharing subgroup rises or falls in the equilibrium wealth distribution depending on the level of inequality, and that its presence raises welfare and the rate of wealth accumulation for all households in the economy.

Dynamic Effects of Subsidizing the Tourism Sector

This paper studies the short-run and long-run effects of a production subsidy to the tourism sector of a small open economy, which can also be thought of as a region within a country. The authors introduce a two-sector dynamic general equilibrium model in which the tourism sector is considered to be labour-intensive and produces traded services. The other sector is capital-intensive and produces a non-traded good, which is also used for capital accumulation. Labour and capital can move freely between sectors. Economic decisions are made by forward-looking representative agents which optimize their intertemporal welfare by choosing consumption of both the non-traded good and tourism services, the sectoral allocation of labour and the rate of wealth accumulation. The authors discuss the short-run, dynamic and long-run effects of a production subsidy to the tourism sector. In the short run, the introduction of a subsidy to tourism production leads to a boom in that sector. As time passes, the economy-wide capital stock is decumulated and production of tourism falls. In the long run, compared to the situation before the subsidy was implemented, tourism production remains on a higher level, whereas output of the non-traded good drops.

The Effect of Religious Denomination on Wealth

The wealth of probated decedents from late-nineteenth-century and early-twentieth-century Ontario is analyzed for evidence of the impact of religious affiliation on the level of wealth and rate of wealth accumulation. After controlling for age, birthplace, occupation, gender, urbanization, and other factors, the results suggest that relative to Anglicans, the wealth of Methodists and Roman Catholics was significantly lower. Moreover, when religious denomination and birthplace are interacted, Canadian-born Anglicans emerge as the dominant wealth group, while the English-born of any denomination and Methodists of any birthplace seem to fare the worst. When wealthage profiles are examined by denomination, Baptists have the steepest profiles, followed by Anglicans and Presbyterians. The data do support the hypothesis that religious affiliation, particularly when interacted with birthplace, has an impact on wealth, though the exact nature of the mechanism is unclear.

WEALTH ACCUMULATION OF CANADIAN AND FOREIGN‐BORN HOUSEHOLDS IN CANADA

This study focuses on the role of foreign‐born households in Canada's asset market. An empirical analysis of wealth accumulation is conducted for a large sample of Canadian households circa 1977–84. This study period reflects a change in Canada's immigration policy which resulted in immigration Rows switching from Europe to Asia. A life‐cycle framework is used to examine wealth accumulation behaviour of the foreign‐born vis‐à‐vis Canadian‐born households. The empirical results confirm the existence of an inverted ‘U’‐shaped wealth‐age profile for both Canadian and immigrant households. However, the 1977 results show that the rate of wealth accumulation is higher for the immigrant household than the Canadian‐born household in pre‐retirement years, while the 1984 results reveal the opposite. After retirement, the rate of wealth dissipation is slower for Canadians than for foreign‐born households. Only the 1984 results indicate that public social security wealth displaces household savings for both the Canadian‐born and the foreign‐born by a small amount. Finally, an immigrant household exhibits a stronger transfer motive within a family than a Canadian‐born household regardless of year tested.