Condorcet was wrong, Pareto was right: families, inheritance and inequality

Cowell, Frank ORCID: 0000-0002-3778-2152 and Van de Gaer, Dirk (2025) Condorcet was wrong, Pareto was right: families, inheritance and inequality. Journal of Public Economic Theory, 27 (2). ISSN 1097-3923

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Abstract

Using a simple model of family decision making we examine the processes by which the wealth distribution changes over the generations, focusing in particular on the division of fortunes through inheritance and the union of fortunes through marriage. We show that the equilibrium wealth distribution exists under standard assumptions and has a Pareto tail that can be characterized in a simple way for a variety of inheritance rules and marriage patterns. The shape of the distribution is principally determined by the size distribution of families. We show how changes in fertility, inheritance rules and inheritance taxation affect long-run inequality.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HQ The family. Marriage. Woman H Social Sciences > HB Economic Theory
JEL classification:	D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement J - Labor and Demographic Economics > J1 - Demographic Economics > J12 - Marriage; Marital Dissolution; Family Structure H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies
Date Deposited:	01 Apr 2025 10:00
Last Modified:	09 May 2025 20:07
URI:	http://eprints.lse.ac.uk/id/eprint/127769

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