Wealth Inequality and Age
This paper has examined simple versions of life-cycle. Keynesian, and target wealth models of consumption. It has drawn out their implications for the age profile of wealth inequality. The latter is observed to decline over the working lifetime and to uncrease in retirement in a range of advanced industrial countries. Performance of the models in generating a realistic age profile of wealth inequelity has been studied, and predictions for consumption inequality have also been noted.
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