Flat 3, 8 Margravine Gardens
London W6 8RH, UK
Institutional Affiliation: London Mathematical Laboratory
Information about this author at RePEc
NBER Working Papers and Publications
|July 2020||On the Distribution of Estates and the Distribution of Wealth: Evidence from the Dead|
in Measuring and Understanding the Distribution and Intra/Inter-Generational Mobility of Income and Wealth, Raj Chetty, John N. Friedman, Janet C. Gornick, Barry Johnson, and Arthur Kennickell, editors
Detailed information about the distribution of the estates left at death has commonly served for the estimation of wealth distribution among the living via the mortality multiplier method. The application of detailed mortality rates by demographics and other determinants of mortality is crucial for obtaining an unbiased representation of the wealth distribution of the living. Yet, in this paper we suggest that a simplified mortality multiplier method, derived using average mortality rates and aggregate tabulations by estate size, may be sufficient to derive compelling estimates of wealth concentration. We show that the application of homogeneous multipliers is equivalent to estimate the distribution of estates. The latter also appears sufficiently close in level and trend to the wealth dis...