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dc.contributor.authorHendricks, Lutzen_US
dc.date.accessioned2009-01-28T15:54:50Z-
dc.date.available2009-01-28T15:54:50Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/19068-
dc.description.abstractThis paper investigates the role of discount rate heterogeneity for wealth inequality. The key idea is to infer the distribution of preference parameters from the observed age profile of wealth inequality. The contribution of preference heterogeneity to wealth inequality can then be measured using a quantitative life-cycle model. I find that discount rate heterogeneity increases the Gini coefficient of wealth by 0.06 to 0.11. The share of wealth held by the richest 1% of households rises by 0.03 to 0.13. The larger changes occur when altruistic bequests are large and when preferences are strongly persistent across generations. Discount rate heterogeneity also helps account for the large wealth inequality observed among households with similar lifetime earnings.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1604en_US
dc.subject.jelE2en_US
dc.subject.ddc330en_US
dc.subject.keywordwealth inequalityen_US
dc.subject.keywordpreference heterogeneityen_US
dc.subject.stwVermögensverteilungen_US
dc.subject.stwLebenseinkommenen_US
dc.subject.stwZeitpräferenzen_US
dc.subject.stwGini-Koeffizienten_US
dc.subject.stwTheorieen_US
dc.subject.stwUSAen_US
dc.titleHow important is discount rate heterogeneity for wealth inequality?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn509688225en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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