CONTENTS
INTRODUCTION ... 5
CHAPTER 1 ... 9
1.1 Life-cycle hypothesis: overview ... 10
1.2 The hypothesis of the stripped down version ... 12
1.3 The temporal evolution of consumption, saving and wealth at the household level…….15
1.4 Aggregate wealth and wealth distribution in a stationary economy ... 19
1.5 The egalitarian model with steadily growing population ... 24
1.5.1 The model with constant per-agent consumption ... 25
1.6 Theory-guided empirical analysis ...26
1.7 The role of bequests and the bequests motive ... 26
CHAPTER 2 ... 31
2.1 Permanent income theory ... 31
2.2 Statement of the permanent income ... 37
2.3 Precautionary Savings ... 39
2.4 Distribution of permanent income ... 43
2.5 Wealth concentration in the U.S ... 45
2.6. Models ... 47
2.6.1 Infinitely-lived dynasty models... 48
2.6.2 Overlapping-generation models ... 50
2.7 Bequest motives ... 52
2.8 Mixture of life cycle and dynastic behavior ... 54
CHAPTER 3 ... 57
Inequality in income ... 57
3.1 Preliminary definition ... 58
3.2 Long run dynamics of growth and of capitalism in the world ...61
3.3 capital-income ratio: case of Britain and France ... 67
3.4 Case of North America ... 74
3.5 The Capital/Income Ratio over the Long Run ... 79
3.6 Inequality of labor income and Inequality of capital ownership ... 83
CHAPTER 4 ... 89
4.1 Inequality and policy direction ... 89
4.2 Income inequality and economic growth ... 98
4.3 Inequality, non standard work and job polarization ... 103
Conclusion ...115 References ... 117
