On the Long-Run Evolution of Inheritance: France 1820– 2050. Piketty, T. Quarterly Journal of Economics, 126(3):1071–1131, 2011. ![On the Long-Run Evolution of Inheritance: France 1820– 2050 [link]](https://bibbase.org/img/filetypes/link.svg "link")
Link doi abstract bibtex This article attempts to document and account for the long-run evolution of inheritance. We find that in a country like France the annual flow of inheritance was about 20– 25% of national income between 1820 and 1910, down to less than 5% in 1950, and back up to about 15% by 2010. A simple theoretical model of wealth accumulation, growth, and inheritance can fully account for the observed U-shaped pattern and levels. Using this model, we find that under plausible assumptions the annual bequest flow might reach about 20– 25% of national income by 2050. This corresponds to a capitalized bequest share in total wealth accumulation well above 100%. Our findings illustrate the fact that when the growth rate g is small, and when the rate of return to private wealth r is permanently and substantially larger than the growth rate (say, r = 4– 5% versus g = 1– 2%), which was the case in the nineteenth century and early twentieth century and is likely to happen again in the twenty-first century, then past wealth and inheritance are bound to play a key role for aggregate wealth accumulation and the structure of lifetime inequality. Contrary to a widespread view, modern economic growth did not kill inheritance.
@article{Piketty2011,
title = {On the Long-Run Evolution of Inheritance: {{France}} 1820\textendash 2050},
author = {Piketty, Thomas},
year = {2011},
journal = {Quarterly Journal of Economics},
volume = {126},
number = {3},
pages = {1071--1131},
doi = {10.1093/qje/qjr020},
url = {https://doi.org/10.1093/qje/qjr020},
abstract = {This article attempts to document and account for the long-run evolution of inheritance. We find that in a country like France the annual flow of inheritance was about 20\textendash 25\% of national income between 1820 and 1910, down to less than 5\% in 1950, and back up to about 15\% by 2010. A simple theoretical model of wealth accumulation, growth, and inheritance can fully account for the observed U-shaped pattern and levels. Using this model, we find that under plausible assumptions the annual bequest flow might reach about 20\textendash 25\% of national income by 2050. This corresponds to a capitalized bequest share in total wealth accumulation well above 100\%. Our findings illustrate the fact that when the growth rate g is small, and when the rate of return to private wealth r is permanently and substantially larger than the growth rate (say, r = 4\textendash 5\% versus g = 1\textendash 2\%), which was the case in the nineteenth century and early twentieth century and is likely to happen again in the twenty-first century, then past wealth and inheritance are bound to play a key role for aggregate wealth accumulation and the structure of lifetime inequality. Contrary to a widespread view, modern economic growth did not kill inheritance.},
isbn = {00335533},
keywords = {Determinants of Wealth and Wealth Inequality,Intergenerational Wealth,Trends in Aggregate Wealth and Wealth Inequality}
}
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Using this model, we find that under plausible assumptions the annual bequest flow might reach about 20– 25% of national income by 2050. This corresponds to a capitalized bequest share in total wealth accumulation well above 100%. Our findings illustrate the fact that when the growth rate g is small, and when the rate of return to private wealth r is permanently and substantially larger than the growth rate (say, r = 4– 5% versus g = 1– 2%), which was the case in the nineteenth century and early twentieth century and is likely to happen again in the twenty-first century, then past wealth and inheritance are bound to play a key role for aggregate wealth accumulation and the structure of lifetime inequality. 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