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Who owns the wealth in tax havens? Macro evidence and implications for global inequality

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  • Alstadsæter, Annette
  • Johannesen, Niels
  • Zucman, Gabriel

Abstract

Drawing on newly published macroeconomic statistics, this paper estimates the amount of household wealth owned by each country in offshore tax havens. The equivalent of 10% of world GDP is held in tax havens globally, but this average masks a great deal of heterogeneity—from a few percent of GDP in Scandinavia, to about 15% in Continental Europe, and 60% in Gulf countries and some Latin American economies. We use these estimates to construct revised series of top wealth shares in ten countries, which account for close to half of world GDP. Because offshore wealth is very concentrated at the top, accounting for it increases the top 0.01% wealth share substantially in Europe, even in countries that do not use tax havens extensively. It has considerable effects in Russia, where the vast majority of wealth at the top is held offshore. These results highlight the importance of looking beyond tax and survey data to study wealth accumulation among the very rich in a globalized world.

Suggested Citation

  • Alstadsæter, Annette & Johannesen, Niels & Zucman, Gabriel, 2018. "Who owns the wealth in tax havens? Macro evidence and implications for global inequality," Journal of Public Economics, Elsevier, vol. 162(C), pages 89-100.
  • Handle: RePEc:eee:pubeco:v:162:y:2018:i:c:p:89-100
    DOI: 10.1016/j.jpubeco.2018.01.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bastani, Spencer & Waldenström, Daniel, 2018. "How Should Capital Be Taxed? Theory and Evidence from Sweden," IZA Discussion Papers 11475, Institute for the Study of Labor (IZA).
    2. Kohnert, Dirk, 2018. "Britain & Africa: heading for the Brexit rocks," MPRA Paper 88554, University Library of Munich, Germany, revised 20 Aug 2018.
    3. Kohnert, Dirk, 2018. "Britain and Africa: heading for the Brexit rocks," MPRA Paper 89202, University Library of Munich, Germany, revised Sep 2018.
    4. Casi, Elisa & Spengel, Christoph & Stage, Barbara, 2018. "Cross-border tax evasion after the common reporting standard: Game over?," ZEW Discussion Papers 18-036, ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung GmbH Mannheim / Leibniz Centre for European Economic Research.
    5. Casi, Elisa & Nenadic, Sara & Orlic, Mark Dinko & Spengel, Christoph, 2018. "A call to action: From evolution to revolution on the common reporting standard," ZEW Discussion Papers 18-035, ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung GmbH Mannheim / Leibniz Centre for European Economic Research.
    6. Kohnert, Dirk, 2018. "Britain and Africa: heading for the Brexit rocks," MPRA Paper 88570, University Library of Munich, Germany, revised 21 Aug 2018.

    More about this item

    Keywords

    Inequality; Wealth; Tax evasion; Tax havens;

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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