Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110821
Authors: 
De Donder, Philippe
Roemer, John E.
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5329
Abstract: 
We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake – this is not a life-cycle model. A competitive firm produces a single good from labor and capital; the rate of return to capital and the wage rate are market-clearing. The second model introduces political lobbying by the wealthy, whose purpose is to reduce the tax rate on capital income. The third model introduces differential rates of return to capitals of different sizes. The fourth model introduces inheritance and intergenerational mobility.
Subjects: 
Piketty
dynamics of wealth accumulation
intergenerational mobility
Kantian equilibrium
JEL: 
D31
D58
E37
Document Type: 
Working Paper

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