Wealth Distribution and Taxation - DARP
Wealth Distribution and Taxation - DARP
Wealth Distribution and Taxation - DARP
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Intra-generational – naïve consumption<br />
• Role of consumption is crucial<br />
• Naïve consumption behaviour:<br />
• income is given by<br />
• consumption aims at a target level:<br />
• earnings are fixed<br />
• <strong>Wealth</strong> accumulation:<br />
• given initial wealth W(0):<br />
• rising/falling wealth:<br />
• W(0) will be determined by intergenerational link<br />
11 February 2012 Frank Cowell: EC426 34
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