Characteristics of Global Top Wealth Distribution
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This thesis examines the characteristics of global top wealth distribution through a demographic model that focuses on age, employing the Forbes magazine 2014 dataset. This thesis aims to address two questions. The first investigates the impact of age on relative wealth distribution based on theoretical assumptions and explores the extent of this impact, if any. Furthermore, by utilizing microdata, this thesis examines the determinants of wealth accumulation by introducing heterogeneity into the homogeneous effect of age on relative wealth across individuals. The second question pursued by this research is to ascertain whether the top-level relative wealth distribution in the year 2014 exhibits a Pareto tail. In the affirmative case, the study seeks to identify the factors that influence the tail parameters of the Pareto distribution. The findings highlight that age alone explains over one-third of relative wealth distribution. Unlike gender, other individual-level variations, such as sectoral differences, entrepreneurship status, inheritance, and country-specific differences of billionaires influence the impact of age on relative wealth distribution.The financial sector, compared to others, has negative effects on wealth accumulation, whereas being an entrepreneur, inheritance as a form of wealth acquisition, and being a citizen of the United States compared to other countries positively affect wealth accumulation in the year 2014. Furthermore, cross-section distribution of top relative wealth distribution in 2014 has a Pareto tail, signifying an extremely skewed distribution of relative wealth. Also, consistent with initial findings, factors such as sectoral differences, entrepreneurial status, the influence of inheritance, and country-specific differences play a significant role in shaping the parameters of the Pareto tail. However, gender does not appear to exert any influence on the tail parameter of the Pareto distribution.