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A study of consumption decisions and wealth, individual data, political economy and theory

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  • James CURTIS Jr

    (Independent researcher, PO Box 3126, Washington, District of Columbia, USA.)

Abstract

Recent studies have used regression decomposition to analyze recent data and found that over seventy percent of the black-white wealth differences remained unexplained (See, e.g., Gittleman & Wolff 2000; Altonji, Doraszelski & Segal 2000; and Blau & Graham 1990). Their results are limited to the variation in modern data. This study contributes improved methodology and historical empirical results to the literature on economic discrimination. In this paper, (i) presents structural regression decompositions, which are modifications to methods developed by Becker (1957) and Oaxaca (1973); (ii) presents a basic empirical test when analyzing structural regression decompositions; (iii) reports the estimated sources of black-white differences in wealth directly before and after emancipation; (iv) links these findings to recent studies. Empirical estimates confirm that the size and persistence of modern black-white wealth differences have historical roots. (v) presents decision-making considerations of “individuals” in an economy with grouped individuals, owners of firms, and social planner(s), conditional on wealth constraints with applied social economic considerations.

Suggested Citation

  • James CURTIS Jr, 2018. "A study of consumption decisions and wealth, individual data, political economy and theory," Journal of Economics Library, KSP Journals, vol. 5(1), pages 99-102, March.
    • Handle: RePEc:ksp:journ5:v:5:y:2018:i:1:p:99-102
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    References listed on IDEAS

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    1. John C. Ham, 1982. "Estimation of a Labour Supply Model with Censoring Due to Unemployment and Underemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(3), pages 335-354.
    2. Edward N. Wolff, "undated". "Racial Wealth Disparities Is the Gap Closing?," Economics Public Policy Brief Archive ppb_66, Levy Economics Institute.
    3. Francine D. Blau & John W. Graham, 1990. "Black-White Differences in Wealth and Asset Composition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 321-339.
    4. James E. CURTIS Jr., 2017. "Differences in wealth, education, and history," Journal of Social and Administrative Sciences, KSP Journals, vol. 4(4), pages 398-417, December.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. James E. CURTIS Jr., 2018. "Differences in wealth, evidence from structural regression decomposition, 1850-1870," Journal of Economic and Social Thought, KSP Journals, vol. 5(1), pages 42-55, March.
    7. Joseph Altonji & Ulrich Doraszelski & Lewis M. Segal, 2000. "Black/white differences in wealth," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 24(Q I), pages 38-50.
    8. James E. CURTIS Jr., 2017. "A theory of wealth accumulation differences considering modern net savings gradualism the impact of unresolved long run differences in wealth accumulation on the annualized net savings in the USA," Journal of Economics Bibliography, KSP Journals, vol. 4(4), pages 375-380, December.
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    More about this item

    Keywords

    Theory of economic discrimination; Structural regression decomposition; Wealth inequality.;
    All these keywords.

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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