Accounting for Cross‐Country Differences in Wealth Inequality

Cowell, Frank; Karagiannaki, Eleni; McKnight, Abigail

doi:10.1111/roiw.12278

Cited by 54 publications

(68 citation statements)

References 31 publications

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“…Wolff (2010) shows that the top quintile of U.S. households owns about 90% of total financial wealth. Cowell, Karagiannaki, and McKnight () provide similar figures for the Euro area.…”

Section: Literature Reviewmentioning

confidence: 62%

Disinflation, Inequality, and Welfare in a Tank Model

Tirelli

Ferrara

2019

Economic Inquiry

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We investigate the redistributive and welfare effects of disinflation in a two-agent New Keynesian model characterized by limited asset market participation and wealth inequality. We highlight two key mechanisms driving our long-run results: (1) the cash in advance constraint on firms working capital; (2) dividends endogeneity. These two channels point in opposite directions. Lower inflation softens the cash in advance constraint and, by raising labor demand, lowers inequality. But disinflation also raises dividends and this increases inequality. The disinflation is always welfare-improving for asset holders. We obtain ambiguous results for non-asset holders, who suffer substantial consumption losses during the transition. (JEL E31, E5, D3, D6)

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“…Wolff (2010) shows that the top quintile of U.S. households owns about 90% of total financial wealth. Cowell, Karagiannaki, and McKnight () provide similar figures for the Euro area.…”

Section: Literature Reviewmentioning

confidence: 62%

Disinflation, Inequality, and Welfare in a Tank Model

Tirelli

Ferrara

2019

Economic Inquiry

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“…Cowell et al . () show that housing wealth is distributed very unequally among households in developed countries. Stiglitz () considers different types of rents and argues that they reflect large amounts of wealth and are also highly concentrated.…”

Section: Introductionmentioning

confidence: 99%

“…Knoll et al (2017) break down the housing value into its components and identifies increasing land prices as the major driver of the increase in housing prices. Cowell et al (2018) show that housing wealth is distributed very unequally among households in developed countries. Stiglitz (2015) considers different types of rents and argues that they reflect large amounts of wealth and are also highly concentrated.…”

Section: Introductionmentioning

confidence: 99%

Taxation of Economic Rents

Schwerhoff

Edenhofer

Fleurbaey

2019

Journal of Economic Surveys

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Economic rents have long been identified as an efficient tax base. In addition, the recent literature documents that rent income is highly concentrated and that rents are quickly increasing. Rent taxation thus seems attractive for reasons of both efficiency and equity. Nevertheless, rent taxation remains a marginal topic in research and policy making. In a systematic review of the neoclassical literature on different rent types, we find that some types of rents reflect inefficiencies and should thus be minimized, while others reward investments and should be supported in line with social welfare. What remains for taxation are land rents, one of the few true scarcity rents. Land rents have significant potential to improve the efficiency of the tax system. We then begin to develop a comprehensive theory of land rent taxation by identifying relevant efficiency and equity effects. The interaction of many of these effects remains unexplored, which might explain policymakers' hesitation in using land taxes to date.

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“… The LWS data are well suited to comparative studies of micro aspects of wealth holding across countries, as illustrated by Cowell et al . (). The data include Australia, Austria, Canada, Finland, Germany, Greece, Italy, Norway, the Slovak Republic, Slovenia, South Africa, Spain, Sweden, the U.K. and U.S.…”

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confidence: 97%

Estimating the Level and Distribution of Global Wealth, 2000–2014

Davies

Lluberas

Shorrocks

2017

Review of Income and Wealth

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This paper estimates the level and distribution of household wealth globally, as well as for regions and countries, for the period 2000–2014. The data used are mainly from household surveys and national accounts balance sheets, covering about two thirds of the world's population and over 95% of global household wealth. Lists of the most wealthy published in the media are used to adjust the upper tail. Wealth levels and distributions are imputed for countries without data. Estimated global household wealth stood at USD 251 trillion in 2014, having grown from USD 117 trillion in the year 2000. Wealth per adult in 2014 was USD 53,000. The estimated Gini coefficient of global wealth was 92.2% in 2014 and the share of the top 10% was 88.3%. Wealth inequality fell from 2000 to 2007, with the share of the top 10% falling from 89.4% to 86.5%, before rising steadily to 2014. From 2000 to 2008 the share of financial assets in gross wealth, an important driver of wealth inequality, fell from 55.2% to 50.2%, before climbing to 55.0% in 2014. Household debt rose from 13.6% of gross assets in 2000 to 16.0% in 2008, and has since fallen to 13.9%.

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Accounting for Cross‐Country Differences in Wealth Inequality

Cited by 54 publications

References 31 publications

Disinflation, Inequality, and Welfare in a Tank Model

Disinflation, Inequality, and Welfare in a Tank Model

Taxation of Economic Rents

Estimating the Level and Distribution of Global Wealth, 2000–2014

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