Turnover activity in wealth portfolios

We examine several subsets of the wealthiest individuals in the US and the UK that are compiled by Forbes Magazine and the Sunday Times. Since these are named subsets, we can calculate the returns to wealth portfolios, and calibrate a statistical equilibrium model of wealth distribution that accounts for the power law of wealth and the (asymmetric) Laplace distribution of portfolio returns. The model provides a relative measure of turnover activity that indicates how often changes in the composition of the wealthiest portfolios occur. Finally, we investigate trends in equality, mobility, and turnover activity.