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Dynastic accumulation of wealth

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  • Degan, Arianna
  • Thibault, Emmanuel

Abstract

Why do some dynasties maintain the fortune of their founders while others completely squander it in few generations? To address this question, we propose a simple deterministic model combining bequests motives and labor supply. We show that the interaction of the two key parameters in the model, the “hunger for accumulation” and the “willingness to exert effort”, can produce a surprisingly rich set of long-run process of wealth accumulation within a family lineage.

Suggested Citation

  • Degan, Arianna & Thibault, Emmanuel, 2016. "Dynastic accumulation of wealth," Mathematical Social Sciences, Elsevier, vol. 81(C), pages 66-78.
  • Handle: RePEc:eee:matsoc:v:81:y:2016:i:c:p:66-78
    DOI: 10.1016/j.mathsocsci.2016.03.005
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    Cited by:

    1. Anupama, G V & Haragopal, V V, 2022. "Influence of assets over dynasties in semi-arid India: econometric analysis using micro level panel data," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 35(Conferenc), December.
    2. Jaime Alonso-Carrera & Jordi Caballé & Xavier Raurich, 2016. "Intergenerational Mobility under Education-Effort Complementarity," Working Papers 905, Barcelona School of Economics.
    3. Jordi Caballé, 2016. "Intergenerational mobility: measurement and the role of borrowing constraints and inherited tastes," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(4), pages 393-420, November.
    4. Jaime Alonso-Carrera & Jordi Caballé & Xavier Raurich, 2016. "Intergenerational Mobility, Occupational Decision and the Distribution of Wages," Working Papers 945, Barcelona School of Economics.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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