scholarly journals Heterogeneity and Persistence in Returns to Wealth

Econometrica ◽  
2020 ◽  
Vol 88 (1) ◽  
pp. 115-170 ◽  
Author(s):  
Andreas Fagereng ◽  
Luigi Guiso ◽  
Davide Malacrino ◽  
Luigi Pistaferri
Keyword(s):  
Population Data ◽  
Wealth Inequality ◽  
Risk Exposure ◽  
Systematic Analysis ◽  
Risky Assets ◽  
Net Worth ◽  
Percentage Points ◽  
Tax Returns ◽  
Asset Classes ◽  
Over Time

We provide a systematic analysis of the properties of individual returns to wealth using 12 years of population data from Norway's administrative tax records. We document a number of novel results. First, individuals earn markedly different average returns on their net worth (a standard deviation of 22.1%) and on its components. Second, heterogeneity in returns does not arise merely from differences in the allocation of wealth between safe and risky assets: returns are heterogeneous even within narrow asset classes. Third, returns are positively correlated with wealth: moving from the 10th to the 90th percentile of the net worth distribution increases the return by 18 percentage points (and 10 percentage points if looking at net‐of‐tax returns). Fourth, individual wealth returns exhibit substantial persistence over time. We argue that while this persistence partly arises from stable differences in risk exposure and assets scale, it also reflects heterogeneity in sophistication and financial information, as well as entrepreneurial talent. Finally, wealth returns are correlated across generations. We discuss the implications of these findings for several strands of the wealth inequality debate.

scholarly journals The Role of Bequests in Shaping Wealth Inequality: Evidence from Danish Wealth Records

2016 ◽  
Vol 106 (5) ◽  
pp. 656-661 ◽  
Author(s):  
Simon H. Boserup ◽  
Wojciech Kopczuk ◽  
Claus T. Kreiner
Keyword(s):  
Administrative Data ◽  
Parental Death ◽  
Wealth Inequality ◽  
Relative Inequality ◽  
Percentage Points ◽  
The Impact ◽  
Over Time

Using Danish administrative data, we estimate the impact of bequests on the level and inequality of wealth. We compare the distributions of wealth over time of people whose parent died and those whose parent did not. Bequests account for 26 percent of the average post-bequest wealth 1-3 years after parental death and significantly affect wealth throughout the distribution. Bequests increase absolute wealth inequality (variance of the distribution censored at the top/bottom 1% increases by 33 percent), but reduce relative inequality (the top 1% share declines by 6 percentage points from the base of 31 percent).

Changes in consumption of food away from home and intakes of energy and other nutrients among US working-age adults, 2005–2014

2017 ◽  
Vol 20 (18) ◽  
pp. 3238-3246 ◽  
Author(s):  
Jessica E Todd
Keyword(s):  
Multivariate Regression ◽  
Energy Content ◽  
Saturated Fat ◽  
Demographic Characteristics ◽  
Fast Foods ◽  
Food Away From Home ◽  
Health And Nutrition ◽  
Percentage Points ◽  
Working Age ◽  
Over Time

AbstractObjectiveTo document changes in consumption of food away from home (FAFH) and intakes of selected nutrients by working-age adults between 2005–06 and 2013–14, covering the most recent recessionary period and recovery.DesignMeans were compared across survey rounds relative to 2005–06. Multivariate regression was used to account for changes in demographic characteristics over time.SettingNational Health and Nutrition Examination Survey (NHANES), 2005–2014.SubjectsWorking-age adults born in 1951–80 (n 12 129) and adolescents and young adults born in 1981–90 (n 5197) who reported day 1 dietary intake data.ResultsApproximately 34 % of energy consumed by working-age adults came from FAFH (14 % from fast foods) in 2005–06. Levels of FAFH consumption were lowest in 2009–10, at 28 and 11 % of energy from FAFH and fast foods, respectively. Percentage of energy from fast foods was 1·9 percentage points higher in 2013–14. Percentage of energy from saturated fat and total mg of cholesterol consumed were lower in 2009–14, while intake of fibre was higher in 2011–14. At-home foods had less saturated fat and more fibre in 2009–14. The greater the percentage of energy from FAFH in the day, the greater the intakes of fat and cholesterol. Percentage of energy from FAFH was highest among those born in 1981–90 and lowest among those born in 1951–60.ConclusionsFAFH is a significant source of energy, fat and cholesterol among working-age adults. Menu labelling may lower FAFH’s energy content and make it easier for consumers to choose more healthful items.

scholarly journals Wealth of nomads – an exploratory analysis of livestock inequality in the Saami reindeer husbandry

2021 ◽  
Author(s):  
Marius Warg Næss ◽  
Bård-Jørgen Bårdsen
Keyword(s):  
Primary Source ◽  
Wealth Inequality ◽  
External Factors ◽  
Social Differentiation ◽  
Reindeer Herding ◽  
Reindeer Husbandry ◽  
The Poor ◽  
Wealth Inequalities ◽  
Rank Differences ◽  
Over Time

Social inequality is pervasive in contemporary human societies. Nevertheless, there is a view that livestock, as the primary source of wealth, limits the development of inequalities, making pastoralism unable to support complex or hierarchical organisations. Thus, complex nomadic pastoral organisation is predominantly caused by external factors, i.e., historically nomadic political organisation mirrored the neighbouring sedentary population's sophistication. Using governmental statistics on reindeer herding in Norway (2001 - 2018), this study demonstrates nothing apparent in the pastoral adaptation with livestock as the main base of wealth that level wealth inequalities and limits social differentiation. This study found that inequality was generally decreasing in terms of the Gini coefficient and cumulative wealth. For example, the proportion owned by the wealthy decreased from 2001 to 2018, while the proportion owned by the poor increased. Nevertheless, rank differences persist over time with minor changes. Especially, being poor is stable: around 50% of households ranked as poor in 2001 continued to be so in 2018. In sum, results from this study indicate that pastoral wealth inequality follows the same patterns as all forms of wealth. Wealth accumulates over time, and because the highest earners can save much of their income (i.e., newborn livestock), low earners cannot. High earners can thus accumulate more and more wealth over time, leading to considerable wealth inequalities.

Disparate Recoveries: Wealth, Race, and the Working Class after the Great Recession

2021 ◽  
Vol 695 (1) ◽  
pp. 173-192
Author(s):  
Fenaba R. Addo ◽  
William A. Darity
Keyword(s):  
Middle Class ◽  
Working Class ◽  
Great Recession ◽  
Wealth Inequality ◽  
Net Worth ◽  
The Great Recession ◽  
Consumer Finances ◽  
White Working Class ◽  
Using Data ◽  
The Relationship

What does it mean to be working class in a society of extreme racial wealth inequality? Using data from the Survey of Consumer Finances, we investigate the wealth holdings of Black, Latinx, and white working-class households during the post–Great Recession (pre–COVID-19) period that spanned 2010 to 2019. We then explore the relationship between working-class and middle-class attainment using a wealth-based metric. We find that, in terms of their net worth, fewer Black working-class households benefitted from the economic recovery than white working-class households. Among white households, the working class saw the greatest increase in wealth in both absolute and relative terms. Working-class households were less likely to be middle class as defined by their wealth holdings, and Black and Latinx households were also less likely to be middle class. For Black households, racial identity is a stronger predictor of wealth attainment than occupational sector.

Volatility Weighting over Time in the Presence of Transaction Costs

2019 ◽  
Keyword(s):  
Transaction Costs ◽  
Empirical Studies ◽  
Risk Control ◽  
Control Technique ◽  
Risk Exposure ◽  
Trading Costs ◽  
Portfolio Risk ◽  
Dynamic Risk ◽  
Weighting Strategy ◽  
Over Time

Numerous empirical studies demonstrate the superiority of dynamic strategies with a volatility-weighting-over-time mechanism. These strategies control the portfolio risk over time by adjusting the risk exposure according to updated volatility forecasts. Yet, to reap all the benefits promised by volatility weighting over time, the composition of the active portfolio must be revised rather frequently. Transaction costs represent a serious obstacle to benefiting from this dynamic risk control technique. In this article, we propose a modified volatility-weighting strategy that allows one to reduce dramatically the amount of trading costs. The empirical evidence shows that the advantages of the modified volatility-weighting strategy persist even in the presence of high transaction costs.

scholarly journals A Financial Training Program for USDA/FSA Borrowers: Evolution and Impacts

2000 ◽  
Vol 29 (2) ◽  
pp. 240-250 ◽  
Author(s):  
Robert L. Parsons ◽  
Gregory D. Hanson ◽  
Wesley N. Musser ◽  
Roland Freund ◽  
Lehan Power
Keyword(s):  
Cluster Analysis ◽  
Training Program ◽  
Impact Analysis ◽  
Cooperative Extension ◽  
Financial Training ◽  
Net Worth ◽  
Educational Benefit ◽  
User Friendly ◽  
Extension Program ◽  
Over Time

A financial training program designed by Cooperative Extension specialists was provided to over 2,000 USDA/FSA borrowers from the Northeast during the period 1994–1999. Key to the success of the workshops was an in-depth, user-friendly curriculum that evolved over time, eventually replacing satellite-feed instruction with pre-taped videos. Cluster analysis classified nearly 70% of workshop participants as “Low Finance Priority” or “Low Finance Knowledge.” Farmers in these clusters received a relatively greater educational benefit from the program than those not in these clusters. Impact analysis indicated that perceived annual gain in farm net worth from application of workshop tools ranged from approximately $5,000 to $10,000. The training addressed the needs of producers typically isolated from Cooperative Extension because the workshop was the only extension program attended that year by nearly two-thirds of them.

scholarly journals College on the Cheap: Consequences of Community College Tuition Reductions

2017 ◽  
Vol 9 (2) ◽  
pp. 155-188 ◽  
Author(s):  
Jeffrey T. Denning
Keyword(s):  
High School ◽  
Community College ◽  
Community Colleges ◽  
College Enrollment ◽  
First Year ◽  
College Tuition ◽  
Percentage Points ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Over Time

This paper examines the effects of community college tuition on college enrollment. I exploit quasi-experimental variation from discounts for community college tuition in Texas that were expanded over time and across geography for identification. Community college enrollment in the first year after high school increased by 5.1 percentage points for each $1,000 decrease in tuition, which implies an elasticity of —0.29. Lower tuition also increased transfer from community colleges to universities. Marginal community college enrollees induced to attend by reduced tuition have similar graduation rates as average community college enrollees. (JEL H75, I22, I23, I28)

Road Traffic Accidents in Turkey: Some Historical and Sociological Perspectives

1999 ◽  
Vol 20 ◽  
pp. 107-123
Author(s):  
Theo Nichols ◽  
Fatih Güngör
Keyword(s):  
Traffic Accidents ◽  
Road Traffic ◽  
Risk Compensation ◽  
Road Traffic Accidents ◽  
Public Concern ◽  
Social Scientists ◽  
Systematic Analysis ◽  
Turkish Case ◽  
Over Time

Although road traffic accidents are a matter of considerable public concern in Turkey, they have attracted little systematic analysis from social scientists. This paper seeks to examine accident trends from 1955 to 1995, in terms of changes in fatalities per vehicle as well as fatalities per head of population. It then critically surveys the adequacy and applicability to the Turkish case of theories of motorization and accidents and of risk compensation and homeostasis. Finally, the paper speculates on how accident variation over time in Turkey may relate to wider social and economic processes.

scholarly journals Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data *

2016 ◽  
Vol 131 (2) ◽  
pp. 519-578 ◽  
Author(s):  
Emmanuel Saez ◽  
Gabriel Zucman
Keyword(s):  
United States ◽  
Income Tax ◽  
Wealth Inequality ◽  
The United States ◽  
Balance Sheets ◽  
Distribution Of Wealth ◽  
Consumer Finances ◽  
Wealth Concentration ◽  
Top Incomes ◽  
Tax Returns

Abstract This paper combines income tax returns with macroeconomic household balance sheets to estimate the distribution of wealth in the United States since 1913. We estimate wealth by capitalizing the incomes reported by individual taxpayers, accounting for assets that do not generate taxable income. We successfully test our capitalization method in three micro datasets where we can observe both income and wealth: the Survey of Consumer Finance, linked estate and income tax returns, and foundations’ tax records. We find that wealth concentration was high in the beginning of the twentieth century, fell from 1929 to 1978, and has continuously increased since then. The top 0.1% wealth share has risen from 7% in 1978 to 22% in 2012, a level almost as high as in 1929. Top wealth-holders are younger today than in the 1960s and earn a higher fraction of the economy’s labor income. The bottom 90% wealth share first increased up to the mid-1980s and then steadily declined. The increase in wealth inequality in recent decades is due to the upsurge of top incomes combined with an increase in saving rate inequality. We explain how our findings can be reconciled with Survey of Consumer Finances and estate tax data.

scholarly journals How Cumulative is Technological Knowledge?

2021 ◽  
pp. 1-31
Author(s):  
Peter Persoon ◽  
Rudi Bekkers ◽  
Floor Alkemade
Keyword(s):  
Knowledge Base ◽  
Peer Review ◽  
Technological Progress ◽  
Technology Development ◽  
Technological Knowledge ◽  
Patent Data ◽  
Systematic Analysis ◽  
Body Of Knowledge ◽  
Knowledge Dynamics ◽  
Over Time

Abstract Technological cumulativeness is considered one of the main mechanisms for technological progress, yet its exact meaning and dynamics often remain unclear. To develop a better understanding of this mechanism we approach a technology as a body of knowledge consisting of interlinked inventions. Technological cumulativeness can then be understood as the extent to which inventions build on other inventions within that same body of knowledge. The cumulativeness of a technology is therefore characterized by the structure of its knowledge base, which is different from, but closely related to, the size of its knowledge base. We analytically derive equations describing the relation between the cumulativeness and the size of the knowledge base. In addition, we empirically test our ideas for a number of selected technologies, using patent data. Our results suggest that cumulativeness increases proportionally with the size of the knowledge base, at a rate which varies considerably across technologies. Furthermore, this rate is inversely related to the rate of invention over time. This suggests that the cumulativeness increases relatively slow in rapidly growing technologies. In sum, the presented approach allows for an in depth, systematic analysis of cumulativeness variations across technologies and the knowledge dynamics underlying technology development. Peer Review https://publons.com/publon/10.1162/qss_a_00140

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