| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5099880 | Journal of Economic Dynamics and Control | 2007 | 27 Pages |
Abstract
I find that discount rate heterogeneity increases the Gini coefficient of wealth by around 0.07 to levels that are close to the data. The share of wealth held by the richest 1% of households rises by around 0.04, but falls short of the data by more than 10 percentage points. Discount rate heterogeneity also helps to account for the large wealth inequality observed among households with similar lifetime earnings.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Lutz Hendricks,