The Dynamics of Inequality. Gabaix, X., Lasry, J., Lions, P., & Moll, B. 2015. Unpublished manuscript![The Dynamics of Inequality [link]](https://bibbase.org/img/filetypes/link.svg "link")
Link abstract bibtex The past forty years have seen a rapid rise in top income inequality in the United States. While there is a large number of existing theories of the Pareto tails of the income and wealth distributions at a given point in time, almost none of these address the fast rise in top inequality observed in the data. We show that standard theories, which build on a random growth mechanism, generate transition dynamics that are an order of magnitude too slow relative to those observed in the data. We then suggest parsimonious deviations from the basic model that can explain such changes, namely heterogeneity in mean growth rates or deviations from Gibrat's law. These deviations are consistent with theories in which the increase in top income inequality is driven by the rise of "superstar" entrepreneurs or managers.
@unpublished{Gabaixetal2015,
title = {The Dynamics of Inequality},
author = {Gabaix, Xavier and Lasry, Jean-Michel and Lions, Pierre-Louis and Moll, Benjamin},
year = {2015},
url = {http://www.nber.org/papers/w21363},
abstract = {The past forty years have seen a rapid rise in top income inequality in the United States. While there is a large number of existing theories of the Pareto tails of the income and wealth distributions at a given point in time, almost none of these address the fast rise in top inequality observed in the data. We show that standard theories, which build on a random growth mechanism, generate transition dynamics that are an order of magnitude too slow relative to those observed in the data. We then suggest parsimonious deviations from the basic model that can explain such changes, namely heterogeneity in mean growth rates or deviations from Gibrat's law. These deviations are consistent with theories in which the increase in top income inequality is driven by the rise of "superstar" entrepreneurs or managers.},
keywords = {Determinants of Wealth and Wealth Inequality},
note = {Unpublished manuscript}
}
Downloads: 0
{"_id":"mounDiovD55iiLesW","bibbaseid":"gabaix-lasry-lions-moll-thedynamicsofinequality-2015","authorIDs":[],"author_short":["Gabaix, X.","Lasry, J.","Lions, P.","Moll, B."],"bibdata":{"bibtype":"unpublished","type":"unpublished","title":"The Dynamics of Inequality","author":[{"propositions":[],"lastnames":["Gabaix"],"firstnames":["Xavier"],"suffixes":[]},{"propositions":[],"lastnames":["Lasry"],"firstnames":["Jean-Michel"],"suffixes":[]},{"propositions":[],"lastnames":["Lions"],"firstnames":["Pierre-Louis"],"suffixes":[]},{"propositions":[],"lastnames":["Moll"],"firstnames":["Benjamin"],"suffixes":[]}],"year":"2015","url":"http://www.nber.org/papers/w21363","abstract":"The past forty years have seen a rapid rise in top income inequality in the United States. While there is a large number of existing theories of the Pareto tails of the income and wealth distributions at a given point in time, almost none of these address the fast rise in top inequality observed in the data. We show that standard theories, which build on a random growth mechanism, generate transition dynamics that are an order of magnitude too slow relative to those observed in the data. We then suggest parsimonious deviations from the basic model that can explain such changes, namely heterogeneity in mean growth rates or deviations from Gibrat's law. These deviations are consistent with theories in which the increase in top income inequality is driven by the rise of \"superstar\" entrepreneurs or managers.","keywords":"Determinants of Wealth and Wealth Inequality","note":"Unpublished manuscript","bibtex":"@unpublished{Gabaixetal2015,\n title = {The Dynamics of Inequality},\n author = {Gabaix, Xavier and Lasry, Jean-Michel and Lions, Pierre-Louis and Moll, Benjamin},\n year = {2015},\n url = {http://www.nber.org/papers/w21363},\n abstract = {The past forty years have seen a rapid rise in top income inequality in the United States. While there is a large number of existing theories of the Pareto tails of the income and wealth distributions at a given point in time, almost none of these address the fast rise in top inequality observed in the data. We show that standard theories, which build on a random growth mechanism, generate transition dynamics that are an order of magnitude too slow relative to those observed in the data. We then suggest parsimonious deviations from the basic model that can explain such changes, namely heterogeneity in mean growth rates or deviations from Gibrat's law. These deviations are consistent with theories in which the increase in top income inequality is driven by the rise of \"superstar\" entrepreneurs or managers.},\n keywords = {Determinants of Wealth and Wealth Inequality},\n note = {Unpublished manuscript}\n}\n\n","author_short":["Gabaix, X.","Lasry, J.","Lions, P.","Moll, B."],"key":"Gabaixetal2015","id":"Gabaixetal2015","bibbaseid":"gabaix-lasry-lions-moll-thedynamicsofinequality-2015","role":"author","urls":{"link":"http://www.nber.org/papers/w21363"},"keyword":["Determinants of Wealth and Wealth Inequality"],"metadata":{"authorlinks":{}},"downloads":0},"bibtype":"unpublished","creationDate":"2019-11-25T20:08:31.161Z","downloads":0,"keywords":["determinants of wealth and wealth inequality"],"search_terms":["dynamics","inequality","gabaix","lasry","lions","moll"],"title":"The Dynamics of Inequality","year":2015,"biburl":"https://bibbase.org/f/nKAPSyp34A9azBzJd/GCWealthProject_WealthResearchLibrary.bib","dataSources":["QFH3S2ktnk2HEGP7y","ya2CyA73rpZseyrZ8","Ehs2RwEzf4bZfKzK4","cJJHdqh9t5tR5wpLH","F3pGsndC3BMm5kzaE","t77TCZsnrGgyo6dsY","BCPeddFnrLq82SA2k","2w2tCMfz9tagnuYcn","grHFPbjkekLtP8Rd5","reZhxJTZLXbC6Xb4R","CievPB5mG8TuzbbZ3","XqKxryftLF3GWq6cY","M7of5cge3GPiYqZve","PZFBspX8PwJz5LKpx","ve96mwrzCBBzfBff6","zu77p3c7mn9doiv7C","gktz2DotJNwWxzBjM","s55XALJsj7pSgkAJ5","6TRStm8krC6i2nGYe","yda7rYQnmKoN94xAr","hHZFQp7q53h3BYKe8"]}