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Evidence from the Dead: New Estimates of Wealth Inequality Using the Distribution of Estates

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

Abstract

This paper studies the estimation of wealth distribution using estates left at death. We establish formal conditions for adopting a simplified version of the classic estate multiplier method, using only minimal information on estates and mortality. We empirically validate these conditions and apply the simplified approach to produce novel long-run top wealth share series for Belgium, Japan, and South Africa, where estate data have not yet been exploited. This approach may vastly expand the range of countries and years for which wealth inequality can be estimated, where estate data exist but the standard method cannot be applied. (Stone Center on Socio-Economic Inequality Working Paper)

Suggested Citation

  • Alvaredo, Facundo & Berman, Yonatan & Morelli, Salvatore, 2024. "Evidence from the Dead: New Estimates of Wealth Inequality Using the Distribution of Estates," SocArXiv a4frb, Center for Open Science.
    • Handle: RePEc:osf:socarx:a4frb
    DOI: 10.31219/osf.io/a4frb
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    References listed on IDEAS

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    1. 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.
    2. Bertrand Garbinti & Jonathan Goupille-Lebret & Thomas Piketty, 2021. "Accounting for Wealth-Inequality Dynamics: Methods, Estimates, and Simulations for France," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 620-663.
    3. Facundo Alvaredo & Emmanuel Saez, 2009. "Income and Wealth Concentration in Spain from a Historical and Fiscal Perspective," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 1140-1167, September.
    4. Facundo Alvaredo & Bertrand Garbinti & Thomas Piketty, 2017. "On the Share of Inheritance in Aggregate Wealth: Europe and the USA, 1900–2010," Economica, London School of Economics and Political Science, vol. 84(334), pages 239-260, April.
    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. 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.
    7. Matthew Smith & Owen Zidar & Eric Zwick, 2023. "Top Wealth in America: New Estimates Under Heterogeneous Returns," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 515-573.
    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. repec:hal:journl:halshs-03231244 is not listed on IDEAS
    10. repec:hal:pseptp:halshs-03231244 is not listed on IDEAS
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