eprintid: 20103 rev_number: 19 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/01/03 datestamp: 2016-03-18 11:17:19 lastmod: 2021-04-02 15:51:48 status_changed: 2017-06-20 22:29:19 type: article succeeds: 15357 metadata_visibility: show creators_name: Degan, Arianna creators_name: Thibault, Emmanuel creators_idrefppn: 061716278 creators_affiliation: UQAM creators_affiliation: Toulouse School of Economics (IDEI and University of Perpignan), France title: Dynastic Accumulation of Wealth ispublished: pub subjects: subjects_ECO abstract: Why do some dynasties maintain the fortune of their founders while others completely squander it in few generations? To address this question, we use a simple deterministic microfounded model based on two main elements: the “hunger for accumulation” and the “willingness to exert effort”. Contrary to models with capital market imperfections, our setting points to the crucial role of our two key ingredients, rather than of initial wealth or transitory shocks to wealth or inflation, on the long-run process of wealth accumulation within a family lineage. In addition, in a context with heterogeneous dynasties, we show that our model can provide a novel interpretation for some macroeconomics issues such as the demise of the rich bourgeoisie, class structure, social mobility, and wealthy inequalities. For example it predicts that those who take the effort to innovate and take advantage of new profitable opportunities are agents who are neither too poor nor too rich. Obviously, this simple framework is a great starting point for further empirical analysis. date: 2016-05 date_type: published official_url: http://tse-fr.eu/pub/30363 divisions: tse language: fr has_fulltext: FALSE subjectsJEL: JEL_D10 subjectsJEL: JEL_D64 subjectsJEL: JEL_D91 subjectsJEL: JEL_E21 view_date_year: 2016 full_text_status: none publication: Mathematical Social Sciences volume: 81 pagerange: 66-78 refereed: TRUE oai_identifier: oai:tse-fr.eu:30363 harvester_local_overwrite: oai_set harvester_local_overwrite: number harvester_local_overwrite: issn harvester_local_overwrite: faculty harvester_local_overwrite: site harvester_local_overwrite: publisher harvester_local_overwrite: id_number harvester_local_overwrite: creators_idrefppn oai_lastmod: 2017-02-24T10:18:04Z oai_set: tse oai_set: ut1c site: ut1 citation: Degan, Arianna and Thibault, Emmanuel (2016) Dynastic Accumulation of Wealth. Mathematical Social Sciences, 81. pp. 66-78.