Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328177 
Authors: 
Year of Publication: 
2025
Citation: 
[Journal:] Review of Economic Analysis (REA) [ISSN:] 1973-3909 [Volume:] 17 [Issue:] 1 [Year:] 2025 [Pages:] 37-67
Publisher: 
International Centre for Economic Analysis (ICEA), Waterloo (Ontario)
Abstract: 
We consider an overlapping generations version of a model suggested by Fargione, Lehmann and Polasky that allows us to show, by means of simulations, that randomness of the rate of return on capital, combined with inheritance of capital and consumption being a concave function of wealth may lead to an increasing concentration of capital. We can also show that the average rate of return being higher than the growth rate of aggregate income, r>g, does not necessarily lead to increasing concentration and that there are cases where concentration of capital does increase while the opposite inequality, g>r, holds.
Subjects: 
capital concentration
wealth distribution
Piketty
simulation
random returns
JEL: 
D31
E17
O43
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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