Detecting a Robust Change in Wealth Concentration without the Knowledge of the Wealth Distribution

Econpubblica Working Paper No. 131

22 Pages Posted: 5 Feb 2009

See all articles by Alessandra Michelangeli

Alessandra Michelangeli

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES); Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS)

Eugenio Peluso

University of Verona - Department of Economics

Alain Trannoy

National Center for Scientific Research (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS)

Date Written: February 5, 2008

Abstract

The paper focuses on the concentration of wealth defined as the expected present value of lifetime resources. We propose an indirect but robust method that detects a change in the concentration of wealth when the full stream of income receipts along the life cycle is unknown. We rely on the consumption distribution at a given period. We exploit the key property of concavity of consumption with respect to wealth to infer a change in wealth concentration from the one in consumption concentration. An application to American data is provided which illuminates the main changes occurred in wealth concentration during the twenty past years.

JEL Classification: D31, D63, D91

Suggested Citation

Michelangeli, Alessandra and Peluso, Eugenio and Trannoy, Alain, Detecting a Robust Change in Wealth Concentration without the Knowledge of the Wealth Distribution (February 5, 2008). Econpubblica Working Paper No. 131. Available at SSRN: https://ssrn.com/abstract=1338022 or http://dx.doi.org/10.2139/ssrn.1338022

Alessandra Michelangeli (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milan, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

U6 Building
Viale Piero e Alberto Pirelli, 22
Milano, 20126
Italy

Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS) ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, 20126
Italy

Eugenio Peluso

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

Alain Trannoy

National Center for Scientific Research (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) ( email )

54, boulevard Raspail
Paris, 75006
France

Register to save articles to
your library

Register

Paper statistics

Downloads
20
Abstract Views
372
PlumX Metrics