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Saving and wealth inequality

Open access
De Nardi, Mariacristina, Fella, Giulio·2017·Review of Economic Dynamics

Abstract

Why are some people rich while others are poor? To what extent can governments affect inequality? Which instruments should they use? Answering these questions requires understanding why people save. Dynamic quantitative models of wealth inequality can help us understand and quantify the determinants of the outcomes that we observe in the data and to evaluate the consequences of policy reform. This paper surveys the savings mechanisms generated by the transmission of bequests and human capital, by preference heterogeneity, by rates of returns heterogeneity, by entrepreneurship, by richer earnings processes, and by medical expenses. It concludes that the transmission of bequests and human capital, entrepreneurship, and medical expense risk are crucial determinants of savings and wealth inequality.

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Metadata

Authors
De Nardi, M., & Fella, G.
Venue
Review of Economic Dynamics
Publisher
Elsevier BV
Published
2017-10
Volume
26
Pages
280-300
ISSN
1094-2025 (ISSN-L)
OpenAlex
W2587994058
Cited by
216
References
4
FWCI
47.52
Type
journal article
Language
en
Open access
hybrid

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CoChat. (2026). Citation check: Saving and wealth inequality. https://app.cochat.ai/papers/10.1016/j.red.2017.06.002
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De Nardi, M., & Fella, G. (2017). Saving and wealth inequality. Review of Economic Dynamics. https://doi.org/10.1016/j.red.2017.06.002

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.