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LIST OF FIGURES 1.1 Model Data................................................... 38 1.2 U.S. Data.................................................... 41 1.3 Wealth Distribution by Age Cohorts............................... 45 1.4 Gini by Age Cohorts........................................... 46 3.1 Illustration of Bequest Movement through Lineage.................. 163 3.2 Mean Wealth of Age Cohort.................................... 178 ix
LIST OF TABLES 1.4.1 Numerical Results............................................ 36 1.4.2 Parameters of the Wealth Distribution............................ 39 1.4.3 Gini Coefficient and Quintiles of the Wealth Distribution............. 42 1.4.4 Top Tail of the Wealth Distribution.............................. 42 1.4.5 Inequality and Bequests....................................... 47 1.4.6 Inequality and the Volatility of the Risky Asset.................... 48 1.4.7 Inequality and Risk Aversion................................... 49 1.4.8 The Economies with and without Inheritance...................... 52 1.5.1 Gini on Taxes............................................... 55 1.8.1 Gini and the Bequest Motive................................... 90 1.8.2 Gini and q.................................................. 91 1.8.3 Gini on the Volatility of the Risky Asset and the Bequest Motive...... 92 2.5.1 Percentiles of the Top Tail.................................... 121 2.5.2 Tail Index, Gini, and Quintiles................................. 122 x
2.5.3 Tax Experiments-Tail Index μ................................. 123 2.5.4 Tax Experiments-Gini....................................... 124 3.1.1 Model Structure of Literature................................. 152 3.4.1 Calibration of Parameters.................................... 172 3.4.2 The Times of Wealth Change................................. 173 3.4.3 Aggregate Variables......................................... 174 3.4.4 Gini and Quintiles of Wealth.................................. 175 3.4.5 Pareto Tail and Top Percentiles of Wealth........................ 176 3.4.6 Gini and Quintiles of Consumption............................. 179 3.4.7 Top Percentiles of Consumption............................... 180 3.5.1 The Effect of Risk Aversion.................................. 181 xi
Density 3 Stationary distribution of wealth in the simulated economy 2.5 2 1.5 1 0.5 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Relative ratio of individual wealth to the aggregate wealth
Density 0.12 0.1 0.08 0.06 0.04 0.02 0-2 -1 0 1 2 3 4 5 Ratio of individual wealth to aggregate wealth
Density Density Density Density 3 Age=20 2 Age=40 2 1.5 1 1 0.5 0 0 2 4 6 Wealth Age=60 2 1.5 1 0.5 0 0 2 4 6 Wealth 0 0 2 4 6 Wealth Age=80 1.5 1 0.5 0 0 2 4 6 Wealth
Gini coefficient 0.8 Gini coefficient conditional on age 0.75 0.7 0.65 0.6 0.55 0 10 20 30 40 50 60 70 80 Age
Mean Wealth 14 x 10 5 12 2007 SCF model Mean Wealth of Age Cohort 10 8 6 4 2 0-2 20 30 40 50 60 70 80 Age