Distribution Of Wealth Research Articles

Wealth dynamics in a multi-aggregate closed monetary system

In this work we examine the statistical properties of a closed monetary economy with multi-aggregates interactions. Building upon Yakovenko’s single-agent monetary model (Dragulescu and Yakovenko, 2000), we investigate the joint equilibrium distribution of aggregate size and wealth. By comparing theoretical and simulated data, we validate our findings and investigate the influence of both micro dynamics and macro characteristics of the system on the distribution. Additionally, we analyze the system’s convergence towards equilibrium under various conditions. Our laboratory model may offer valuable insights into macroeconomic phenomena allowing to reproduce typical wealth distribution features observed in real economy.

Consumption Quality and Employment Across the Wealth Distribution

Abstract In the U.S., market hours worked are approximately flat across the wealth distribution. Accounting for this phenomenon is a standing challenge for standard heterogeneous-agent macro models. In these models, wealthier households consume more and work fewer hours. We propose a theory that generates the cross-sectional wealth-hours relation as in the data. We quantify this theory in a heterogeneous-agent incomplete-markets model with three key features: a quality choice in consumption, non-homothetic preferences, and a multi-sector production structure. We show that the model produces consumption expenditure patterns consistent with the data and realistic “quality Engel curves”.

#2116 Socioeconomic position and incidence of chronic kidney disease in Central Italy

Abstract Background and Aims Socioeconomic position is strongly related to most chronic conditions, with higher prevalence, higher incidence, and more adverse outcomes in disadvantaged groups of the population compared to well-off counterparts. Similar to other pathologies, several studies reported inequalities in the prevalence of chronic kidney disease (CKD). Few studies investigated socioeconomic differences in disease incidence, and some analyzed socioeconomic inequalities in long-term outcomes, such as mortality or end-stage renal disease, with conflicting results. We aimed to investigate the association between educational level and CKD in the Lazio Region Longitudinal Study, i.e., the 2011 census cohort of all residents followed through administrative databases from 1 Jan 2012 to 31 Dec 2022. Method The Lazio region is one of the twenty Italian regions. With its 5.5 million inhabitants, it is located in central Italy and includes Rome, the Italian capital city. We considered the population enrolled in the Lazio Region Longitudinal Study aged 35-90 years. We used a validated algorithm to identify prevalent cases of CKD at baseline (1 Jan 2012) and incident CKD cases during the follow-up (1 Jan 2012 to 31 Dec 2022). We used the education available for each individual from the census questionnaire to indicate socioeconomic position. We used Cox proportional hazard models to investigate the association between educational level and incidence of CKD. We used age as the time scale to punctually adjust for age, and we adjusted the multivariable models for place of residence, citizenship, marital status, and occupational status. Results We selected 3 752 190 25-90-year-olds included in the Lazio Longitudinal Study. We excluded 66 376 prevalent cases, obtaining a study population of 3 685 814 CKD-free individuals. The prevalent cases were more likely males than females, increased with age, were more Italians than foreigners, were diabetics, and residents in Rome compared to the general population. The study population comprised 1 754 781 men with a mean age of 52 years and 1 997 409 women with a mean age of 54 years. During the 11 years of follow-up, we identified 88 784 new CKD cases among men and 70 217 among women, with crude incidence rates of 540 and 364 per 100, 000 person-years, respectively. The age-adjusted models showed a strong association between educational level and CKD incidence in both men and women (Table 1). In men, compared to those with a university degree, those with upper secondary education had a 30% higher risk of suffering from CKD, those with lower secondary education had a 54% higher risk, while the primary educated men had a 70% higher risk. Among women, the excess risk of low-educated compared to those with a university degree was even higher than in men, with HR = 1.33 (95% CI 1.28-1.38), HR = 1.76 (95% CI 1.69-1.82), and HR = 2.24 (95% CI 2.16-2.32) in upper secondary, lower secondary and primary school educated, respectively. The socioeconomic gap was slightly reduced when we adjusted for possible confounders. Conclusion We found strong socioeconomic inequalities in CKD incidence. Further analyses will investigate the clinical risk factors that mediate the association between educational level and CKD incidence.

A theory of capital flow retrenchment

During a downturn in the global financial cycle there is a simultaneous retrenchment in gross capital flows and a fall in risky asset prices. The global financial cycle is closely related to fluctuations in risk appetite. We develop a model that can simultaneously produce a fall in gross outflows, inflows, and asset prices following an increase in global risk aversion. There is heterogeneity across investors within a country in the willingness to hold risky assets and to hold foreign assets. The fall in the asset price after a rise in global risk aversion shifts the wealth distribution towards investors that are less willing to hold foreign assets. This leads a drop in gross flows. We calibrate the within country heterogeneity in the model to match heterogeneity observed in micro data of household portfolios. The retrenchment in the calibrated model is quantitatively similar to what we observe in the macro data.

CHASING THE TAIL: A GENERALIZED PARETO DISTRIBUTION APPROACH TO ESTIMATING WEALTH INEQUALITY

AbstractSince the work reported in Vermeulen (Review of Income and Wealth, 64(2), 357–387; 2018), a literature has developed using the simple Pareto distribution along with “rich list” information to improve estimates of the upper tail of the wealth distribution measured in surveys. Because the construction of such external data is typically opaque and subject to error, it may be best not to depend exclusively on this approach. This paper develops an alternative approach, using the generalized Pareto distribution (GPD), extending an estimation strategy developed by Castillo and Hadi (Journal of the American Statistical Association, 92(440), 1609–1620; 1997) in a novel way to survey data. The extension allows for addressing imperfections in the effective coverage of the upper tail of the wealth distribution, as well as allowing the imposition of an external measure of aggregate wealth as a constraint. The paper implements the method on Austrian survey data that has weak coverage of wealthy households. The results indicate that even with a range of plausible adjustments for data imperfections, relying only on the survey data to project the upper tail is insufficient to yield implied wealth aggregates in the range implied by aggregate figures. Imposing the implied aggregate as a constraint is necessary. The approach may be particularly useful in comparing survey‐based inequality measures across and within countries and over time, as well as in constructing distributional financial accounts.

Kedudukan Harta Gono-Gini dalam Pembagian Harta Waris Menurut Hukum Islam

Marriage is a universal rule that applies to all creatures, including humans, animals and plants, as a way to reproduce and maintain life. In Islam, marriage means a contract between a man and a woman's guardian which makes sexual relations halal. A marriage can end due to death, divorce, or court settlement. Divorce is seen as the final step if the relationship cannot be repaired, and in the Qur'an and Hadith, there are no detailed provisions regarding the divorce process, so the law can be adjusted to the situation. One of the consequences of marriage is the existence of, Common Property Treasure acquired during the marriage, and must be managed responsibly by husband and wife. This concept is regulated in Indonesian laws and regulations, such as the Marriage Law, Civil Code, and the Compilation of Islamic Law., Common Property Treasure includes wealth acquired during marriage and belongs jointly to husband and wife, while inherited property is wealth owned before marriage. The issue of, Common Property Treasure has not been widely discussed in classical jurisprudence studies, but in the modern context, this has become important to ensure justice in Division of assets in case of divorce. Islamic law allows the distribution of assets through deliberation or court decisions if necessary. The concept of community property supports the fair distribution of wealth between husband and wife, in accordance with the principles of justice in Islam.

Long-Term Effects of Equal Sharing: Evidence from Inheritance Rules for Land

Abstract What are the long-term economic effects of a more equal distribution of wealth? We investigate consequences of land inequality, exploiting variation in land inheritance rules that traverse political, linguistic, geological, and religious borders in Germany. In some German areas, inherited land was to be shared or divided equally among children, while in others land was ruled to be indivisible. Using a geographic regression discontinuity design, we first show a more equal land distribution in areas with equal division; other potential drivers of growth are smooth at the boundary and equal division areas were not historically more developed. Today, equal division areas feature higher average incomes and more entrepreneurship which goes in hand with a right-shifted skill, income, and wealth distribution. We show evidence consistent with the more even distribution of land leading to more innovative industrial by-employment during Germany’s transition from an agrarian to an industrial economy that, in the long-run, led to more entrepreneurship.

Widening the gap of political inequality? The effect of the COVID-19 pandemic on political engagement

Abstract There is extensive evidence that the COVID-19 pandemic has mostly affected the less well-off in society, boosting economic inequality. In contrast, little is known about how much such rising economic disparities affected the involvement of individuals in politics, thereby enhancing political inequality. Extending the research on political inequality to a key and somewhat neglected dimension of citizens’ involvement with politics - political engagement - this article claims that the COVID-19 depressed engagement and promoted political inequality. The analysis relies on a comparative European approach and on data before and after the emergence of the pandemic. Besides generally finding an overall socioeconomic gap with regard to political engagement, results also suggest that the pandemic somewhat lessened engagement, increasing the gap between the more and less socioeconomically advantaged. Generally, this is not strictly due to a tendency to decrease engagement among the latter but also to increase engagement among the former.

Analysis of Distribution and Marketing Efficiency of Pineapples from a Sharia Economic Perspective

The agricultural sector plays an important role in long-term economic development and rural economic recovery in Indonesia. The development of agricultural-based businesses and sustainable agricultural systems is needed to improve the quality of human resources and agricultural products. Horticultural commodities, such as fruit, have high economic potential and can be a source of income for farmers. However, there are several obstacles in the agricultural sector, such as competition with other horticultural products, low quality and quantity of local supplies, and a lack of transparent market information. In addition, distribution in Islam has principles that can be applied in the context of the distribution of wealth and economic resources in Islam, such as justice, equality, public benefits, prohibition of exploitation, and social solidarity. This research aims to analyze pineapple marketing distribution and pineapple marketing efficiency from a sharia economic perspective. The research method used is field research using primary and secondary data. The research results show that there are two marketing distribution channels that are used, namely marketing distribution channel I and marketing distribution channel II. Marketing distribution channel I involves farmers selling directly to the city without intermediaries, while marketing distribution channel II involves collectors buying from farmers and selling to the city. Keywords: Distribution, Efficiency, Marketing

OBJECTIVE HOUSING SALES AND RENT PRICES IN REPRESENTATIVE HOUSEHOLD SURVEYS: IMPLICATIONS FOR WEALTH, INEQUALITY, HOUSING MARKET, AND AFFORDABILITY STATISTICS

Many economic analyses require hypothetical but realistic sales and rent prices for properties representative of the housing stock and reflecting current market conditions. To achieve this, we replace subjectively reported prices in a representative household survey in Luxembourg with objectified hedonic imputations informed by observable market data. Thus, we propose a powerful tool for assessing the health and affordability of housing markets, compiling housing‐related statistics and simulating hypothetical scenarios. This approach also enables us to test for the reliability of survey responses. When switching to objectified values, we detect shifts in the wealth distribution, large regional variation in market indicators, and striking affordability concerns: only 18 percent of Luxembourg's renters could theoretically afford to purchase their inhabited dwellings given current market conditions. Further, participants' tendency to mis‐estimate market values strongly correlates with tenure length and type, dwelling type, income, and wealth.

Why are lower socioeconomic background students underrepresented in Erasmus? A focus on the selection into mobility and degree course organization

ABSTRACT Disadvantaged students in higher education are significantly underrepresented in study abroad programs. Existing research has explored this socioeconomic disparity in student mobility, primarily by comparing mobile and non-mobile students. However, these studies often overlook the extensive selection process students undergo to join a mobility program, encompassing application phases, eligibility assessments, and ability evaluations. This study investigates how these selection steps contribute to the unequal uptake of higher education mobility in Europe, focusing on the European Union’s most popular study-abroad program ‘Erasmus’. Additionally, it explores how the program organization at the degree course level is associated with socioeconomic disparities in student mobility. Using administrative population data from a large Italian university, covering 46,000 graduates, the study finds that, on average, 90% of socioeconomic disparities in Erasmus mobility are due to disadvantaged students shying away from the application, while ability selection is only marginally important. Additionally, degree-level characteristics, particularly the social segregation across fields of study, matter. Although the study is based on data from a single university in Italy, it has implications for an international audience in countries with similar institutional settings for international student mobility, as it demonstrates for the first time the impact of the selection process and degree course organization on the socioeconomic gap in study abroad program participation.

Initiative to Increase Equity in Clinical Care: Experience at 1 Children's Hospital.

Initiative to Increase Equity in Clinical Care: Experience at 1 Children's Hospital.

Resilience and Vulnerability: Examining the Impact of COVID-19 Outbreaks on Indians

Even though the COVID-19 pandemic in India may have passed its height in 2023, it is still having a major effect on the country's population, economy, and healthcare system. After surviving the first wave, the public health system must now contend with the prospect of sustained pressure on its resources and workforce. Due to peak-time overcrowding, non-COVID illnesses may have gone undiagnosed or untreated. Because the pandemic hit low-income areas and informal labourers the hardest, socioeconomic gaps became wider. Many fell more into poverty as a result of lockdowns, company closures, and job losses. A possible fall in GDP and investment is one of the long-term effects that are just now becoming apparent. Anxieties about mental health also rose to the forefront. Anxiety, despair, and other mental health problems spiked during the lockdowns, social isolation, and virus dread. The road to complete recuperation will certainly be lengthy and need ongoing endeavours to fortify the healthcare system, tackle socioeconomic disparities, and offer mental health assistance to the populace; but, India has achieved progress in limiting the virus's spread. Keywords: COVID-19, India, Public Health, Long-Term Impact, Socioeconomic Disparity, Mental Health

Revisiting Interconnection Between Technological Evolution and The Dynamics of Employment and Income Distribution

Technological development has been a continuous process. In fact, this signifies the strength of the process of development. There has been quantitative as well as qualitative changes in the way the human being produces its means of production as well as the means of livelihood. One must say that the development in the means of production (the machines and tools) determines the availability of quality and quantity of means of livelihood. Hence, it may be assumed that the availability of means of livelihood to the common masses should be a direct function of the evolution of the technology of production. But, the benefits of the development of technology spreads among the stakeholders in varying proportions. Distribution of means of livelihood, (income and output) depends on the distribution of ownership of the means of production as well as the number of people and the labor hours utilized in the production process. Distribution of means of production and income and output is a socio-political process. With the advent of the Industrial Revolution, the world faced changing socio-political structure through constitutional and democratic movements. At various milestones of technological evolution, various provisions determining the quality of life of the workforce like the number of working days and working hours and the disbursement of the reward for production kept changing. Different parts of the world experienced a reduction in the number of working hours and days at various stages under pressure of democratic movements. In light of this, the paper attempts to revisit the impact of the technological evolution, particularly, information technology and artificial intelligence, on the distribution of income and wealth and, also its connection with the growth of employment (or, unemployment). For this it takes a journey through the history since the Industrial Revolution in general and the post-liberalization era (since 1990s) in particular, in view of the qualitative changes in the production process owing to the emergence computer and information technology, robotics and artificial intelligence. The paper finds that there has been a mismatch between the rate of growth of production and the allocation of the output among the stakeholder, particularly the workforce. This has resulted into widening inequality of income along with high rate of unemployment.

The Maximal and Minimal Distributions of Wealth Processes in Black–Scholes Markets

The Black–Scholes formula is an important formula for pricing a contingent claim in complete financial markets. This formula can be obtained under the assumption that the investor’s strategy is carried out according to a self-financing criterion; hence, there arise a set of self-financing portfolios corresponding to different contingent claims. The natural questions are: If an investor invests according to self-financing portfolios in the financial market, what are the maximal and minimal distributions of the investor’s wealth on some specific interval at the terminal time? Furthermore, if such distributions exist, how can the corresponding optimal portfolios be constructed? The present study applies the theory of backward stochastic differential equations in order to obtain an affirmative answer to the above questions. That is, the explicit formulations for the maximal and minimal distributions of wealth when adopting self-financing strategies would be derived, and the corresponding optimal (self-financing) portfolios would be constructed. Furthermore, this would verify the benefits of diversified portfolios in financial markets: that is, do not put all your eggs in the same basket.

Price theory, loanable fund theory, and indifference curves: theorizing authority through misuse of mathematics, logic and improbable assumptions

Economist Adam Smith‘s study ( 1776 ) initially was ‘Political Economy ‘, then knowledge used for eradicating poverty, want, and unemployment and then to study inflation, stagnation, recession, etc. Thus it became the science of economics. Economist J.M. Keynes viewed ‘ Political Economy and added three definitions a) Wealth b) Welfare and c) Scarcity in the study. But Richardo shifted from production and distribution of wealth to “ The produce of earth - all that is derived from its surface by the united application of labor, machinery, and capital. Economist T.R. Malthus ( 1820 ) joined to add one more dimension of wealth “ material(productive ) wealth and immaterial ( unproductive ) wealth “. L. Robbins and others criticized the neglect of immaterial wealth and stressed the importance of services. Modern economists are of the view that immaterial wealth - services are essential to increase production, productivity, and good health. Economist Alfred Marshall stated, “ Political Economy or Economics is the study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and the use of the material requisites of well-being “. Robins ( 1931 ), defined economics based on i) Unlimited wants ii) Scarce means, and iii) Alternative uses of means. This is the historical background of definitions in Economics in general. With utopian and illogical assumptions, passing no mathematical rigor, ignoring very vital parameters, and free use of mathematical figures as ornaments the topics of a) price theory b) loanable fund theory, and c) indifference curves have no theories, no precision but are only verbose and literary...The author feels that these topics do not deserve a place in 21st-century Economics.

Consumption externalities, elastic labor supply and wealth distribution

This study employs a neoclassical growth model to investigate the impact of consumption externalities on the distribution of wealth. It also jointly accounts for heterogeneity in the degree of consumption externalities, heterogeneity in the initial wealth endowments, and endogenous labor supply. First, we demonstrate that catching-up occurs when an initially poorer household works more than an initially wealthier one, after which the additional income acquired through hard work offsets the initial wealth difference. Second, a reduction in wealth inequality is only consistent and systematic if an initially wealthier household works relatively less than the social average. When this condition is not met, a reduction in wealth inequality only occurs if the initial wealth is highly and unevenly distributed.

Rentierism—Political Instability Nexus: The Danger of Oil-producing Region Crisis in Nigeria

The growing popularity of the rentier state theory has made the focus on the impact of oil rents on political stability central for revealing how natural resource (including oil) windfalls link to the weakness of institutional quality in any resource-rich economy. Considering the core characteristic of a rentier state (such as Nigeria)—a distributive political economy—the article examines how the stability of Nigerian political system can be affected by oil rents over the period 1996–2021. Through the adoption of autoregressive distributed lag (ARDL) bounds test to cointegration and vector error correction mechanism (VECM) for the test of long-run causality, the apparent effect of oil rents on Nigerian political development is reflected in the analyses and findings. Empirical evidence supports the oil impedes political stability assertion, as there is statistically valid negative association between oil rents and political stability in the short run and long run. It is demonstrated that oil wealth could offer greater incentives for civil conflicts, which have resulted in escalating political problems. In addition, the causality mechanism implies that the relationship found merely indicates association between oil rents and the level of political stability in the long term, and it is not causal. Thus, it is posited that through the adoption and implementation of sound policy measures, the escalation of conflicts would likely subside, especially in most oil-rich regions or states, whereas civil order could be promoted. It is, therefore, critical to enhancing fairness in the use and distribution of oil wealth, improving people’s welfare, particularly in the oil-producing communities and in general, ensuring that democratic principles in the management of resource windfalls are sustained. JEL: Q33, Q34, H56, H12

Income Inequality as a Barrier to Economic Growth

This paper examines the relationship between income inequality and economic growth. Drawing on existing literature and empirical data, we analyze the effects of income inequality on the US GDP using statistical methods such as linear modeling. Our results show that high levels of income inequality are a barrier to sustained economic growth, as the concentration of wealth in a few individuals limits overall consumer spending and investment. Additionally, we find that income inequality exacerbates social and political instability, leading to further negative consequences for economic growth. We conclude that addressing income inequality through policy interventions such as progressive taxation and redistribution is essential for promoting long-term economic prosperity and equity in the United States. Our research contributes to the ongoing discourse on income inequality and its implications for economic growth and highlights the need for evidence-based policy solutions to address this pressing issue.

Pension reform and wealth inequality: Theory and evidence

A growing literature explores reasons for rising wealth inequality, but is mostly silent on the role of pension systems despite their well-understood influence on life-cycle savings. This paper develops a simple life-cycle model to lay bare the primary theoretical mechanisms connecting pension systems, asset accumulation, and the wealth distribution. Mandated fully-funded plans transform individuals with lower incomes, often characterized as low savers, into asset owners, and may also imply a more equal wealth distribution than pay-as-you-go-based systems. To test the empirical validity of these predictions, the paper explores a pension reform in Denmark, a country that witnessed declining wealth inequality over the last decades. In a calibrated life-cycle model employing unique register data, the Danish pension reform emerges as a key factor explaining the downward trend in wealth inequality.