The Dynamics of Inequality

By Xavier Gabaix, Jean-Michel Lasry, Pierre-Louis Lions, Benjamin Moll. 2016

391 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/f5ca1bdbe7880719433231247e0166cd88512c36

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Citations in the corpus

Socioeconomic Status and Macroeconomic Expectations (2017, neutral): “Moreover, nonparticipation of low-SES households could result in heterogeneity in wealth returns that is correlated with the level of wealth, which in turn plays a role in generating wealth inequality (Favilukis 2013; Gabaix et al. 2016).”
Heterogeneity and Persistence in Returns to Wealth (2018, neutral): “perspective two theorems, one by Grey (1994) and another by Kesten (1973). Grey’s theorem asserts that, in an economy with homogeneous returns to wealth and heterogeneous income, the wealth distribution inherits the properties of the income distribution, including the thickness of its tails.”
The evolution of wealth inequality over half a century: The role of taxes, transfers and technology (2016, neutral): “19 This is in contrast to models that generate high levels of wealth concentration using random growth mechanisms, which have slow transitional dynamics, as pointed out by Gabaix et al. (2015).”
Mean field and n‐agent games for optimal investment under relative performance criteria (2017, background): “-component structure discussed above. Mean ﬁeld games, ﬁrst introduced in [40] and [32], have by now found numerous applications in economics and ﬁnance, notably including models of income inequality [26], economic growth [35], limit order book formation [28], systemic risk [17], optimal execution [”
A Schumpeterian Model of Top Income Inequality (2014, positive): “We follow the implementation by Gabaix et al. (2016) and augment our basic setup to include two growth states for entrepreneurs.(12) When researchers discover a new idea, a fraction of them inherit the high-growth fH parameter. They then face a Poisson process with arrival rate p for transitioning p”
Wealth Distribution and Social Mobility in the US: A Quantitative Approach (2015, background): “Notable and very interesting exceptions are Gabaix et al. (2016), Kaymak and Poschke (2016), and Hubmer et al. (2017). We extend the analysis to possibly non-stationary distributions in Section 6 as a robustness check. Our preliminary results are encouraging, in the sense that the model seems to be ”
Saving and Wealth Inequality (2017, positive): “…contributions were purely statistical and assumed that consumption was an exogenous constant fraction of wealth, work by Benhabib et al. (2011), Benhabib et al. (2015), Aoki and Nirei (2016), and Gabaix et al. (2016) have extended this result to micro-founded models of consumption and savings.”
Income and Wealth Inequality in America, 1949–2016 (2018, neutral): “…this assumption, as models based on labor income risk typically produce too little wealth concentration at the top and cannot account for substantial shifts in wealth inequality that occur over short time horizons (Gabaix et al. 2016; Hubmer, Krusell, and Smith 2017; Benhabib and Bisin 2018).”