The worldwide gap between rich and poor is widening. Status seeking and status keeping are fueled by the conspicuous consumption of luxury goods. These bright shiny objects are staples in a restricted economy in which only the wealthy participate. The notion of gaining riches for the purpose of helping the poor is fading. Materialism, luxury and riches have been the subject of religious and secular inquiry. In this quest, wealth has been condemned and applauded. Prestige-obsessed consumers are becoming blind to worsening social conditions.

China has been experiencing a great transition from a socialist collective economy to a market economy since 1978. Before the transition started, the Communist Party had established a socialist collective system with very low levels of income and wealth inequality. With the deepening of the rural reform and the development of rural industry, a large number of people were lifted out of poverty. However, as the people's living standards are rising, disparities in income and wealth are also being accentuated. This thesis's main purpose is to study the extent and determinants of income and wealth inequality in rural China. Based on a sample survey data from Anhui and Sichuan provinces, the thesis answers the following five questions: 1. How much income and wealth inequality is there in rural China in 1994-1995? 2. How has inequality in rural China changed since the reform of 1978? 3. How do the components of income and wealth in China affect the income and wealth distributions? 4. What social and economic factors are most responsible for influencing income and wealth in rural China? 5. How much of the inequality in income and wealth can be accounted for by the factors that predict income and wealth? The main findings of the study are, first, rural income inequality was low in the two provinces in 1994-1995 and wealth inequality was higher than income inequality. Second, in the industrialized Sichuan province, nonagricultural income made a big contribution to income inequality, while in the agricultural Anhui province, agricultural income played an important role in increasing income inequality. Third, education, good land, sufficient labor, and better communication resources are positively related to income and wealth. / Master of Science

In the U.S., wealth is unequally distributed across racial and income groups. Scholars have promoted numerous strategies to address inequalities in wealth, but evidence about their effectiveness is limited. This dissertation examines whether community-based organizations can help low-income individuals improve their credit usage and credit scores as part of a strategy to help them build their wealth. Credit histories and scores influence access to affordable loans and other forms of credit as well as employment and housing opportunities, insurance rates, and utility and rental deposits. As a result, credit plays an important role in individuals’ ability to weather financial crises, increase savings, and build wealth. Specifically, I assess the impacts and implementation of a program model that integrates financial education and counseling into employment services for low-income job seekers. The study uses a comparison group design to assess program impacts, comparing the outcomes of program participants to those of a matched group of low-income individuals who were seeking assistance from public employment agencies that did not offer financial or credit counseling. I use multivariate regression analysis to assess differences in the outcomes of program participants and comparison group members and to examine whether some organizations were more effective than others in helping participants achieve the outcomes. I also conduct a qualitative assessment of the organizational, programmatic, and contextual factors that influenced program implementation and outcomes across the five organizations in the study. I found that community-based organizations can help low-income individuals make progress in building positive credit histories. By combining financial education and counseling with employment services, the programs increased job seekers’ receipt of financial counseling relative to the comparison group, and program participants were more likely than comparison group members to have an increase in positive activity on their credit reports two years after entering the program. However, overall the program did not increase the likelihood that participants had a credit score or that they had a prime score after two years. Only program participants who had substantial recent credit activity when they entered the program were more likely than their counterparts in the comparison group to have a prime credit score after two years. Some organizations were more effective than others in helping low-income individuals achieve the targeted credit outcomes. Four of the five had impacts on whether participants had positive activity on their credit reports. One organization also had positive impacts on the likelihood of having a credit score and of having a prime score among all individuals who received financial counseling while two others had positive impacts on scores for subgroups of participants. One organization had no positive effects. The implementation analysis revealed that environmental, organizational, and programmatic factors interacted to produce differences in outcomes across organizations. Organizational and managerial experience with and commitment to the model and goals and integration of the model into the organizations’ core services were critical to effective implementation. The three organizations whose financial coaches embraced the model’s credit-building approach, which counsels individuals to use credit responsibly, had more positive impacts on credit outcomes than those that did not. The results also provide evidence that the characteristics of the communities the organizations served influenced outcomes. Communities’ racial composition was correlated with indicators of economic health, the presence of financial institutions, and credit availability, and the findings indicate that individuals in mixed race and majority-Hispanic communities were better able to access credit than those in majority-Black communities. This dissertation contributes to the policy and research literature in a number of ways. It uses a rigorous methodology to assess program effects, examines change in credit behavior and outcomes, assesses how implementation processes influence outcomes, and includes a broader segment of the low-income population than past studies, including those who lack credit histories. The findings provide evidence that low-income people of color face significant barriers to accessing mainstream forms of credit and suggest that policies are needed to increase consumers’ understanding of credit and access to credit at affordable rates and terms. The findings contribute to research and theory on the wealth accumulation process and can inform the work of policymakers and practitioners seeking to increase the financial well-being of low-income people of color. / Sociology

This paper argues that the cumulative causation processes between wealth and power risk leading to an escalation of wealth inequality. We confirm with new survey data for the Eurozone Piketty's conclusions that wealth is highly concentrated and that this inequality is perpetuated through dynastic wealth. This leads to an ever-concentrating ability to shape economic and political institutions. While neoclassical economics has a blind spot where power is concerned, we discuss how heterodox approaches have attempted to conceptualize this structural power which influences the framework of economic activity. Finally, we discuss three concrete channels through which the unequal distribution of private assets may affect power relations and economic activity.

in English In my diploma thesis I propose a dynamic stochastic general equilibrium model to describe economic inequality. The model combines two approaches that were traditionally used to model inequality - first, it features two classes of agents that differ in their ownership of capital and second, each class consists of heterogeneous agents who are subject to uninsurable idiosyncratic shocks. This combination allows the two classes to behave in a fundamentally different way while maintaining the individual character of agents in the economy - a feature that has not been modeled before but which adequately describes the empirical reality. I show that the model with classical RBC structure and a single wage underestimates the observed inequality. When the wage differential is introduced through different taxation of the two classes, the model matches empirical inequality much better. Further I argue that the government can significantly reduce inequality at a relatively small cost in terms of output lost. Finally using Theil coefficient decomposition, I show how much of the total inequality is attributable to between-class and within-class inequalities.

The debate of economic inequality is long-lived and have in the recent years come to be reignited. Although there is little research that supports fully eradicating wealth inequality, the subject of appropriate levels of inequality is an extensively discussed matter. This paper uses a model based upon the board game Monopoly to discuss the drivers of wealth inequality, and study the effect of introducing georgistic, income and wealth taxation respectively in the game. Using iterated simulations the results yielded display evidence of wealth and georgistic taxation having a noteworthy impact on wealth inequality at certain stages of the game. Additionally, correctly specified income taxation yields notable results. Despite the model’s simplicity, the results found share interesting similarities with empirical evidence.

The aim of this thesis is to examine how wealth inequality alters when macroeconomic factors such as housing price index, inflation rate, and minimum wage change. In the theoretical part, the potential connection between some macroeconomic factors and wealth inequality is described through the link of the Lorenz Curve and Pareto distribution. In the empirical part, we analyze the development of wealth inequality in 21 countries from the European Union from 2004 to 2015. The study presents significant evidence that the housing price index is negatively correlated with wealth inequality while similar conclusions cannot be made regarding inflation rate and minimum wage. In this paper, the Gini index is used as a proxy for wealth inequality.

On November 25, 2008, the Federal Reserve initiated what came to be the largest Asset Purchase Program in history1, the Large-Scale Asset Purchase Program, widely known a quantitative easing (QE). When the Federal Reserve in October 29, 2014, announced the end of the program, they held $4.5 trillion worth of assets. This rather unconventional monetary policy came in the aftermath of the 2008 financial crisis and since its implementation, critics have argued that the policy increases inequality in terms of income and wealth. Studies on the impact of QE on income inequality lead to divergent conclusions, but the close link between QE and the stock markets, as explained by the Portfolio Rebalancing Effect, suggests that QE should increase wealth inequality. This hypothesis however, relies on a crucial assumption, namely that richer households hold a larger portion of their wealth in stocks. As other assets of a household, such as the primary residence, are likely to increase less than proportionally with wealth, I find it plausible that the portion allocated to direct or indirect stock holdings increases with wealth, resulting in a higher exposure to stocks for the very rich. Statistics from the Survey of Consumer Finances, presented in this paper, confirm that richer households indeed have the higher exposure to stocks. I use a difference-in-difference model to estimate the causal impact of QE on wealth inequality in the United States and my results suggests that wealth inequality attributable to QE) increased with at least 25 percent, measured as a change in the wealth-ratio between the 9th decile of households and the artificial middle-income household constructed in accordance with the Synthetic Control Method.

Wealth distribution is an important issue in Economics, especially wealth inequality. There are no absolutely perfect solutions to this issue long times ago. Despite we are in 21 century, the situation are getting worse and hard to resolve. We focus on developing an agent simulation model based on Evolutionary game and Scale-free network. From this model, we observed some phenomena in wealth distribution by changing the network structure. And we experiments 5 strategies to increase the connectivity of agents in network, which increasing the edges to fully-connected network or increasing the edges between two different groups. After these experiments, we find that the increasing of connectivity in the network is positive to the agents¡¦ wealth accumulation which means we build more relationship with the other people is benefit to our wealth accumulation. Furthermore, we divide the agents in the simulation to three groups: the poor, the middle class and the rich. In the group simulation, we find that increasing the connectivity inside the poor group is the best way to decrease the Gini coefficient and wealth inequality.

Inequality, institutions and economic growth in Latin AmericaThis essay examines three recent historical approaches to the political economy of Latin America’s relative economic backwardness. All three locate the origins of contemporary underdevelopment in defective colonial institutions linked to inequality. The contrasting view offered here affirms the significance of institutional constraints, but argues that they did not arise from colonial inequalities, but from the adaptation of Iberian practices to the American colonies under conditions of imperial weakness. Colonial inequality varied across the Americas; while it was not correlated with colonial economic performance, it mattered because it determined the extent of elite resistance to institutional modernization after independence. The onset of economic growth in the mid to late nineteenth century brought economic elites to political power, but excluding majorities as inequality increased restrained the region’s twentieth-century growth rates and prevented convergence / En el presente ensayo se examinan tres enfoques históricos recientes sobre la economía política del atraso económico relativo de América Latina. Los tres enfoques sitúan el origen del subdesarrollo contemporáneo en instituciones coloniales defectuosas ligadas a la desigualdad. La visión contrastante que se ofrece aquí reafirma la importancia de las limitaciones institucionales, pero argumenta que estas no surgieron de las desigualdades coloniales, sino de la adaptación de las prácticas ibéricas a las colonias americanas bajo condiciones de debilidad imperial. La desigualdad colonial variaba en las Américas; no obstante, no estuvo correlacionada con el desempeño económico y fue significativa porque determinó la extensión de la resistencia de las elites a la modernización institucional de la Independencia. El comienzo del crecimiento económico desde la mitad y hasta fines del siglo XIX llevó a las elites económicas al poder político, pero al excluir a las mayorías, a la par que la desigualdad se incrementaba, restringió las tasas de crecimiento económico de la región durante el siglo XX e impidió la convergencia.