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Wealth Distribution With and Without Real Estate Assets and Mortgage Debt in ten European Countries — A Post-Kaleckian Approach

Author

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  • Eckhard Hein
  • Moritz Marpe
  • Karolina Schütt

Abstract

Ederer and Rehm (2020b) empirically calibrated long-run equilibrium wealth distribution for ten European countries, mainly using 2010 Household Finance and Consumption Survey (HFCS) data. Our research extends this analysis in two ways. Firstly, using the 2010, 2014, 2017, and 2021 HFCS data, we recalibrate the equilibrium based on 2010 data and track the capitalists’ share of wealth over the decade. We observe convergence tendencies towards the stable long-run equilibrium in some but not in all countries. Secondly, we expand the Ederer and Rehm (2020b) model to include real estate assets and mortgage debt. Recalibrating the long-run equilibrium for this extended model using 2010 values produces a similar pattern: However, the extended model shows a much lower actual capitalists’ share of wealth, supporting the idea that real estate assets, adjusted for mortgage debt, are more equally distributed than other types of wealth. Based on 2014, 2017 and 2021 HFCS data, we find a convergence of actual wealth distribution towards the stable long-run equilibrium for some, but not for all countries. In several countries, the stable long-run equilibrium distribution itself varies over time, partly in line with actual distribution which points to potential endogeneity of the former towards the latter.

Suggested Citation

  • Eckhard Hein & Moritz Marpe & Karolina Schütt, 2026. "Wealth Distribution With and Without Real Estate Assets and Mortgage Debt in ten European Countries — A Post-Kaleckian Approach," Review of Political Economy, Taylor & Francis Journals, vol. 38(3), pages 904-926, May.
    • Handle: RePEc:taf:revpoe:v:38:y:2026:i:3:p:904-926
    DOI: 10.1080/09538259.2025.2484594
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