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Comparing inequality and mobility in linear models: Comment

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  • Di Pietro, Christian
  • Sorge, Marco M.

Abstract

This comment shows that Peng (2018)’s Theorem 2 requires amendment. A new set of (relatively stricter) assumptions is provided, under which Peng (2018)’s findings –in particular, the asymmetric impact of capital and income risk on wealth mobility –hold true, and the approach developed therein proves suited for comparing stationary distributions of linear stochastic models.

Suggested Citation

  • Di Pietro, Christian & Sorge, Marco M., 2018. "Comparing inequality and mobility in linear models: Comment," Economics Letters, Elsevier, vol. 172(C), pages 56-58.
    • Handle: RePEc:eee:ecolet:v:172:y:2018:i:c:p:56-58
    DOI: 10.1016/j.econlet.2018.08.025
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    References listed on IDEAS

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    1. Moyes, Patrick, 1987. "A new concept of Lorenz domination," Economics Letters, Elsevier, vol. 23(2), pages 203-207.
    2. Christian Pietro & Marco M. Sorge, 2018. "Stochastic dominance and thick-tailed wealth distributions," Journal of Economics, Springer, vol. 123(2), pages 141-159, March.
    3. Jess Benhabib & Alberto Bisin & Shenghao Zhu, 2011. "The Distribution of Wealth and Fiscal Policy in Economies With Finitely Lived Agents," Econometrica, Econometric Society, vol. 79(1), pages 123-157, January.
    4. Xavier Gabaix, 2009. "Power Laws in Economics and Finance," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 255-294, May.
    5. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    6. Zhu, Shenghao, 2013. "Comparisons of stationary distributions of linear models," Economics Letters, Elsevier, vol. 119(2), pages 221-223.
    7. Peng, Baochun, 2018. "Comparing inequality and mobility in linear models," Economics Letters, Elsevier, vol. 168(C), pages 155-157.
    8. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inequality; Mobility; Stochastic orders; Wealth;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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