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Evidence from the dead: new estimates of wealth inequality based on the distribution of estates

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  • Alvaredo, Facundo
  • Berman, Yonatan
  • Morelli, Salvatore

Abstract

This paper examines the estimation of the distribution of wealth using estates left at death. We establish formal conditions for implementing a simplified version of the classic estate multiplier method, relying solely on minimal information about estates and mortality. These conditions are empirically validated, and the simplified approach is applied to produce new long-run top wealth share series for Belgium, Japan, and South Africa, where estate data have previously been underutilized. This method holds potential for expanding the range of countries and years in which wealth concentration can be estimated, especially where estate data exist but the standard method with heterogeneous multipliers is inapplicable.

Suggested Citation

  • Alvaredo, Facundo & Berman, Yonatan & Morelli, Salvatore, 2025. "Evidence from the dead: new estimates of wealth inequality based on the distribution of estates," LSE Research Online Documents on Economics 127181, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127181
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    File URL: https://researchonline.lse.ac.uk/id/eprint/127181/
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    References listed on IDEAS

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    1. Emmanuel Saez & Gabriel Zucman, 2016. "Editor's Choice Wealth Inequality in the United States since 1913: Evidence from Capitalized Income Tax Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 519-578.
    2. Alvaredo, Facundo & Atkinson, Anthony B. & Morelli, Salvatore, 2018. "Top wealth shares in the UK over more than a century," Journal of Public Economics, Elsevier, vol. 162(C), pages 26-47.
    3. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2021. "Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," PSE-Ecole d'économie de Paris (Postprint) hal-03474044, HAL.
    4. Wojciech Kopczuk, 2015. "What Do We Know about the Evolution of Top Wealth Shares in the United States?," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 47-66, Winter.
    5. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2021. "Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," Post-Print hal-03474044, HAL.
    6. Arthur B. Kennickell, 2019. "The tail that wags: differences in effective right tail coverage and estimates of wealth inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(4), pages 443-459, December.
    7. Jesse Bricker & Alice Henriques & Jacob Krimmel & John Sabelhaus, 2016. "Measuring Income and Wealth at the Top Using Administrative and Survey Data," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(1 (Spring), pages 261-331.
    8. Blanchet, Thomas & Martínez-Toledano, Clara, 2023. "Wealth inequality dynamics in europe and the united states: Understanding the determinants," Journal of Monetary Economics, Elsevier, vol. 133(C), pages 25-43.
    9. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2021. "Correction to: Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 707-707.
    10. repec:hal:journl:halshs-03231244 is not listed on IDEAS
    11. repec:hal:pseptp:halshs-03231244 is not listed on IDEAS
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    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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