Wealth Concentration, Income Distribution and Alternatives

June 8, 2015

Authors use demand-driven models of economic growth and inequality to conclude US household wealth concentration is not likely to decline in response to fiscal interventions alone.

This paper finds that the creation of an independent public wealth fund could lead to greater equality. Similarly, once-off tax/transfer packages or wage increases will not reduce income inequality significantly; on-going wage increases in excess of productivity growth would be needed.

Authors: Lance Taylor, Ozlem Omer, and Armon Rezai
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