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Skewed Wealth Distributions: Theory and Empirics

Benhabib, Jess, Bisin, Alberto·2018·Journal of Economic Literature

Abstract

Invariably, across a cross-section of countries and time periods, wealth distributions are skewed to the right displaying thick upper tails, that is, large and slowly declining top wealth shares. In this survey, we categorize the theoretical studies on the distribution of wealth in terms of the underlying economic mechanisms generating skewness and thick tails. Further, we show how these mechanisms can be micro-founded by the consumption–savings decisions of rational agents in specific economic and demographic environments. Finally we map the large empirical work on the wealth distribution to its theoretical underpinnings. (JEL C46, D14, D31, E21, J31)

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Metadata

Authors
Benhabib, J., & Bisin, A.
Venue
Journal of Economic Literature
Published
2018-12-01
Volume
56
Issue
4
Pages
1261-1291
ISSN
0022-0515 (ISSN-L)
OpenAlex
W2270435006
Cited by
320
References
4
FWCI
62.65
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Skewed Wealth Distributions: Theory and Empirics. https://app.cochat.ai/papers/10.1257/jel.20161390
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Benhabib, J., & Bisin, A. (2018). Skewed Wealth Distributions: Theory and Empirics. Journal of Economic Literature. https://doi.org/10.1257/jel.20161390

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