?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F48440%2F&rft.title=Consumption%2C+Wealth%2C+and+Income+Inequality%3A+A+Tale+of+Tails&rft.creator=Gaillard%2C+Alexandre&rft.creator=Hellwig%2C+Christian&rft.creator=Wangner%2C+Philipp&rft.creator=Werquin%2C+Nicolas&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=We+provide+evidence+that+the+distributions+of+consumption%2C+labor+income%2C+wealth%2C+and+capital+income+exhibit+asymptotic+power-law+behavior+with+a+strict+ranking+of+upper+tail+inequality%2C+in+that+order%2C+from+the+least+to+the+most+unequal.+We+show+analytically+and+quantitatively+that+the+canonical+heterogeneous-agent+model+cannot+replicate+the+proper+ranking+and+mag-nitudes+of+these+four+tails+simultaneously.+Mechanisms+addressing+the+wealth+concentration+puzzle+in+these+models+through+return+heterogeneity+lead+to+a+mirror+consumption+concen-tration+puzzle.+We+match+the+cross-sectional+data+on+these+four+Pareto+tails+by+positing+a+combination+of+non-homothetic%2C+wealth-dependent+preferences+and+scale-dependent+returns+to+capital.+We+underscore+the+importance+of+these+results+by+showing+that+all+four+dimensions+of+top+inequality+jointly+determine+the+long-run+elasticity+that+governs+the+revenue-maximizing+capital+tax+rate.&rft.publisher=TSE+Working+Paper&rft.date=2023-12&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F48440%2F1%2Fwp_tse_1493.pdf&rft.identifier=++Gaillard%2C+Alexandre+%3Chttps%3A%2F%2Fwww.idref.fr%2F19927682X%3E%2C+Hellwig%2C+Christian+%3Chttps%3A%2F%2Fwww.idref.fr%2F190565152%3E%2C+Wangner%2C+Philipp+%3Chttps%3A%2F%2Fwww.idref.fr%2F223888532%3E+and+Werquin%2C+Nicolas+%3Chttps%3A%2F%2Fwww.idref.fr%2F22388863X%3E++(2023)+Consumption%2C+Wealth%2C+and+Income+Inequality%3A+A+Tale+of+Tails.++TSE+Working+Paper%2C+n.+23-1493%2C+Toulouse+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F128768&rft.language=en