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How long would it take to establish shareholder socialism?

Author

Listed:
  • Carnevali, Emilio
  • Corneo, Giacomo
  • Vellucci, Pierluigi

Abstract

This paper develops a formal framework for the establishment and expansion of a Sovereign Wealth Fund (SWF) from the perspective of Shareholder Socialism. After reviewing the heterogeneous origins and financing arrangements of existing SWFs, we present a dynamic model that characterizes feasible pathways through which advanced economies can build a large-scale public equity fund without relying on natural resource revenues or foreign-exchange reserves. To evaluate the time required to reach target fund-to-GDP ratios under plausible scenarios, we use Monte Carlo simulations that account for return uncertainty. The results indicate that a sizeable public wealth fund can be accumulated within twenty to thirty years.

Suggested Citation

  • Carnevali, Emilio & Corneo, Giacomo & Vellucci, Pierluigi, 2026. "How long would it take to establish shareholder socialism?," Discussion Papers 2026/19, Free University Berlin, School of Business & Economics.
  • Handle: RePEc:zbw:fubsbe:343041
    DOI: 10.17169/refubium-52931
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    JEL classification:

    • H0 - Public Economics - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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