How Wealthy are the Rich?

نویسندگان

چکیده

Underreporting and undersampling biases in top tail wealth, although widely acknowledged, have not been statistically quantified so far, essentially because they are readily observable. Here we exploit the functional form of power law‐like regimes wealth to derive analytical expressions for these biases, use German microdata from a popular survey rich list illustrate that tiny differences non‐response rates lead estimates differ by an order magnitude, our case ranging 1 9 trillion euros. seriously compounds problem, find estimation totals scale‐free systems oftentimes tends be spurious. Our findings also suggest recent debates on existence scale‐ or type‐dependence returns ill‐posed available data cannot discriminate between type‐dependence, one hand, statistical other hand. Yet both economic theory mathematical formalism indicate sampling reporting more plausible explanations observed than type‐dependence.

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ژورنال

عنوان ژورنال: Review of Income and Wealth

سال: 2021

ISSN: ['1475-4991', '0034-6586']

DOI: https://doi.org/10.1111/roiw.12550