Questions tagged [wealth]
The wealth tag has no summary.
65 questions
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Is there a threat that the AI will wreck capitalism by making personal consumption unbounded?
The current capitalist system is mostly based on the simple fact that personal consumption is bounded. A person cannot eat more resources than physically possible, cannot wear more clothing than ...
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Does comparing currency expansion vs lifetime income directly tell us about wealth distribution?
For example, let's say the M2 currency expansion rate is stable at 5.5% per year (there's 5.5% more USD in circulation)
Now consider the income after taxes of an average someone, from all sources, ...
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How true is "wealth inequality is a side effect of prosperity"?
I recently watched a video by Economics Explained (a YouTube channel on econs) https://www.youtube.com/watch?v=swOpLpZaA78&ab_channel=EconomicsExplained
One of the striking messages I got was &...
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Why does a country like Singapore have a lower gini coefficient than France despite France having higher income/wealth taxes?
As the title suggests, and my source (in 2022) being - https://ourworldindata.org/economic-inequality
SG (FR) has a gini coefficient of 0.43 (0.46), where a lower gini coefficient represents lower ...
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Who bears the burden of a land value tax over the long-term?
EDIT: I’m not sure if “burden” implies I’m talking about incidence on sellers/buyers but I’m not; I’m just asking about who bears the cost of the tax (as in which people - current owners, future ...
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Why isn't Net Worth Change of a country used to calculate its economic power, as opposed to GDP?
As I understand, GDP is the sum of market values of final goods and services produced in a country in a year.
Let me define Net Wealth Change or NWC as the difference between a country’s net worth at ...
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Why are final services sold internally (to residents) accounted for in a country’s GDP?
My understanding is that many pure services result in no direct creation of global wealth, but only in a transfer of wealth.
Here I mean wealth in an economics sense as the sum of goods and ...
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What data / evidence is there to support the assertion that wealth taxes are ineffective because they're difficult to implement?
Whenever I see discussions of wealth taxes, inevitably one main assertion keeps being, well, asserted: "wealth tax will never work because it's too difficult to implement". Of course more ...
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Linear Engel Curve
How to prove that if the Engel curves (expenditures as a function of wealth) are linear in wealth, then the indirect utility function has the form $v_{i}(p,a_{i})=\alpha_{i}(p)+\beta(p)a_{i}$ for an ...
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Comparing manufacturing and services sectors with respect to the scope for division of labor
In the Wealth of Nations, Adam Smith compares agriculture and manufacturing and concludes that due to the reduced scope for specialization in the former as compared to the latter, those economies that ...
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Do inheritances break Piketty's r>g model's conclusions?
In Capital in the Twenty-First Century Piketty suggests that if the return on capital is higher than the economic growth, then wealth inequality in society will rise.
Yet, this model seems to ignore ...
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How to prove Kelly criterion maximizes wealth compared to other betting strategies, and how to generalize such a proof
The Kelly criterion approach to a betting situation basically involves maximizing the expected logarithm of one's wealth. The assumption is that maximizing the logarithm appears to inadvertently ...
- 111
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Where can we find M2 (or M1) data breakdown by wealth percentiles?
(this question refers to the US only)
We have official data on M2 by the Fed, but, if I understand correctly, this M2 data includes even bank deposits of firms/corporations where I am after the ...
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How much does generational wealth contributes to wealth inequality?
I've been reading about income/wealth inequality and the ways different countries (US/EU) are trying to solve this.
I've also learned about two rivaling points of view that can be expressed as follows:...
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On quadratic utility functions
Question
A risk-averse, non-satiated investor has decided to use the utility function $$U(w) = w + dw^2,$$ where $$d \leq 0$$ is a constant, to describe his preferences.
Derive an upper bound for $w$, ...
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