Heterogeneous Dynasties and Long-Run Mobility*

• 成果类型: Article
• 署名作者: Benhabib, Jess; Bisin, Alberto; Fernholz, Ricardo T.
• 署名单位: New York University; Claremont Colleges; Claremont Graduate University; Claremont McKenna College
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1093/ej/ueab095
• 发表日期: 2022
• 页码: 906-925
• 关键词: social-mobility; 3 generations; WEALTH; persistence; US; entrepreneurship; transmission; INEQUALITY; earnings; POWER

摘要

Recent empirical work has demonstrated a positive correlation between grandparent-child wealth rank, even after controlling for parent-child wealth rank, and a positive correlation between dynastic wealth ranks across almost six hundred years. We show that a simple heterogeneous agents model with idiosyncratic wealth returns generates a realistic wealth distribution, but fails to capture these long-run patterns of wealth mobility. An auto-correlated returns specification of this model also fails to capture both short- and long-run mobility. However, an extension of the heterogeneous agents model that includes permanent heterogeneity in wealth returns is able to simultaneously match the wealth distribution and short- and long-run wealth mobility.