Drivers of US wealth inequality
We had another chance to discuss our ongoing research on the drivers of US wealth inequality. There are many drivers of change in the US economy over the past decades, constructing an adequate model is a never-ending channel. Perhaps this is why the discussion was very lively and we received a ton of useful suggestions. The biggest concerns were related to health expenditure (both on the government side and as a driver of voluntary saving decision). Another issue is the recurring challenge of bequest motive: how should one thing about the evolution of bequests and bequest motives over the past seven decades?
Our current version of the model -- still long way to go -- replicates the rise in wealth inequality consistent with the data. It also produces really interesting insights into what-ifs of the US policy and skill-biased technological change.