IDEAS home Printed from https://ideas.repec.org/a/spr/italej/v11y2025i3d10.1007_s40797-024-00304-3.html
   My bibliography  Save this article

Simulating Long-Run Wealth Distribution and Transmission: The Role of Intergenerational Transfers

Author

Listed:
  • Michele Bavaro

    (University of Oxford)

  • Stefano Boscolo

    (University of Milan)

  • Simone Tedeschi

    (University of Cassino and Southern Lazio)

Abstract

This paper utilises the Italian Treasury DYnamic Microsimulation Model (T-DYMM) to project individual and household economic trends up to 2070, focusing on the intergenerational transmission of wealth inequality. To analyse the impact of intergenerational transfers on wealth inequality, various scenarios are compared to a baseline. The results suggest that net wealth inequality is expected to remain fairly stable until 2040, when it is expected to increase progressively, especially due to the rising size and inequality of intergenerational transfers. Demographic factors such as increased life expectancy and declining fertility are the main explanations for this phenomenon. Although certain assumptions, such as disregarding behavioural adjustments in response to tax changes, have their limitations, this study offers valuable insights into the potential impacts and timelines of inheritance tax reforms on long-term inequality transmission.

Suggested Citation

  • Michele Bavaro & Stefano Boscolo & Simone Tedeschi, 2025. "Simulating Long-Run Wealth Distribution and Transmission: The Role of Intergenerational Transfers," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(3), pages 947-981, November.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:3:d:10.1007_s40797-024-00304-3
    DOI: 10.1007/s40797-024-00304-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40797-024-00304-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40797-024-00304-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:italej:v:11:y:2025:i:3:d:10.1007_s40797-024-00304-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.